Weighing buying vs renting
I know this is probably a common question. But I'm weighing renting vs buying right now. I live in a pretty desirable area near the coast in the Northeast US so neither option is particularly affordable but buying seems better long term and even mid-term as rent is rising quick.
I currently live near my hometown and intend to stay in the area for a while. I work fully remote and make 98k annually (which is about 6k monthly after taxes, closer to 5.5k after retirement and insurance). I have almost 90k in liquid savings that can contribute to a down payment.
I am currently considering making an offer for a condo that I like a lot. It costs 220k with a pretty low HOA (around 250). I would put 20% (44k) down to avoid PMI, which still leaves me an ample emergency fund of 40k (probably less after other expenses in the process but definitely over 30k). I am buying as a single person. The condo is in great condition at 900 square ft, and 2 bedrooms which I'm looking for in my living situation to have an office. Its also near friends which would be nice for community purposes. Monthly payments would be around 1700 a month which is only a bit more than my current rent of 1350 (my half). I'm pre-approved and interested rate will end up around 6.6-6.7% (though things are changing quickly rn and I haven't sent an offer yet).
My current living situation is ending as my roommate is moving out and rent will probably go up a bunch anyways since rent is insane in my area. In order to rent a comparable unit in my area to the condo, I would be paying 1800-2000 monthly in rent. I also have absolutely no desire to live with a random person and would prefer to live alone and believe that I can afford to do so.
My job is very stable and I don't fear losing it. Or it's at least as stable as you can feel given the current state of the world 😅. To me, buying in my situation looks like a no brainer. The current volatility of the economy has me a bit concerned about committing like this, but I don't think waiting does me any good. I don't foresee housing prices dropping in my area as it's fairly affluent and desirable.
Any thoughts if I seem prepared to handle the condo? My parents are super conservative with money and also not in touch with the market (never bought, built their house 30 yrs ago) and have discouraged me from buying right now with the volatility of things. Most other people seem to think I'm very well prepared to buy and its a better decision for me financially. The prospect of buying is exciting to me as well as I'd finally be able to fully customize my own place and start building equity and refining new skills for homeowning.
Posted Apr 8, 2025, 9:20 PM UTC