.webp?h=8 "Merry Fistmas!")
I've been at my current job for over a year now and it's got solid pay ~$60k/yr. I've still been bumming it at my parents with the goal moving out by buying my own place - likely with a friend who'd pay me rent.
However, with the housing market as it is with 8% interest rates and low supply it seems I'm stuck kicking back with my parents again.
At the same time, I feel like I'm stunting my development as I'd held off any serious relationships until I have my own place.
Renting doesn't seem ideal unless my parents kick me out (unlikely, we all get along and I pull my weight) as I just see it as lighting money on fire I could be saving for an actual house.
ATM I'm thinking of bitting the bullet for inflated interest rates as I'm in a good place financially (I have zero debt) but it does make me concerned that the “you will own nothing” seems less and less like a conspiracy theory for the Zoomer generation.
Is this r-slurred? What is the best move here?
Jump in the discussion.
No email address required.
I know we meme about it here and other parts of the internet but this is seriously an r-slured way to view renting.
If you own your own home you'll need to pay property taxes, usually more bills (around here water for example is nearly always covered by the landlord), and interest payments on the mortgage, which for a 30-year mortgage is gonna start at somewhere between 2/3rds and 3/4 of your monthly mortgage payment. All that money is being "burned" just as rent would be, the only money that isn't is the principal portion of your mortgage payment, which isn't gonna be high in a 30-year mortgage at the start anyways.
The difference (since landlords aren't in the business of losing money) is what you pay for the flexibility of being able to move at will, without having to pay insanely high transaction costs (total transaction cost of a home is as much as 10% including origination fees on loans, agent fees, etc., across both buy and sell sides), plus without the capital outlay needed to purchase a home (down payment).
So stop being r-slurred and just rent a place. You'll gain an understanding of what it's like to live on your own and take care of yourself - actually take care of yourself, not what you're doing now.
As a side note, stepping away from the financial aspects, there's a huge amount of independence that comes from not living with your parents. None of my friends who have moved into their own homes/apartments have ever complained, the response is universally "darn why did I wait so long?", especially if you want to start dating.
Jump in the discussion.
No email address required.
Seems to one of the few dissenting view here.
I fully agree renting is great for flexibility but I frankly don't need any flexibility atm and wish to stay in the area I'm in
ATM the independence thing is the only pro I can see for myself and it's not really that huge of a sacrifice like a lot of people here are saying - if I'm still stuck in two years I think I'll re-assess but talking with people here it's not nearly as dire as I was making it.
Does that all make sense.
Jump in the discussion.
No email address required.
I'm not saying you should definitely move out. I'm just saying that if your reasoning for waiting until you can buy a house is "renting is throwing money away" you're being dumb. There's other reasons to stick around and live at home for another year or two, but "paying money to a landlord is setting it on fire" is stupid.
Keep in mind that if you go straight into homeownership, you'll be making two very large changes at the same time (living on your own + owning your own home). That's not inherently terrible or anything but it'll be more of a shock than taking it one at a time.
Jump in the discussion.
No email address required.
Yeah I think we're in agreement then.
Jump in the discussion.
No email address required.
More options
Context
More options
Context
More options
Context
More options
Context