I've wanted to purchase a home for years, partially for the independence/privacy and self satisfaction, partially for the long term financial benefit, but always balked at what I perceived as high prices or now high interest.
me-33 I'm a musician who's never had a full-time job but I've cultivated lots of reliable part time work teaching plus gigs, income ~70K
140K in various retirement accounts over a bunch of different part time jobs. Always max out Roth IRA and HSA (shoeboxing everything at this point) but not even close on 401K as it hasn't been offered at every job and is not matched at any of my employers
155K in brokerage account
85K in cash no debt
You might wonder why I have a chunk of change in a brokerage vs maxing out 401K. Not all of my work has given me access to 401K, though opportunities have increased in the last few years, and it's still not matched. Since I wanted to buy a house but it wasn't imminent, I started investing some money (while conservatively saving some money) with the thought that it could be used for a down payment if I wanted or needed, or could be left to sit for 20 years. Maybe stupid but hasn't bitten me yet. The tax implications will be tough if I choose to liquidate all of it at once and use it for a downpayment.
Partner-33-is a teacher and has a few side hustle jobs, ~80K
Much less in current savings so not going to help with down payment but saves for retirement like me. student debt ~5000
In addition to our retirement accounts, we should both retire with decent pensions as we both work (me part time, planning to be full-time at some point for at least 5yrs for this reason) in public schools/universities. Looking to start family soon and with grandparents ready for child care duties nearby, we will likely both continue to work. My work schedule and amount can be flexible as well, with impacts on my earnings obviously.
Higher end MCOL, average single family homes ~$600K, townhomes $300K-400K. I mention townhomes and would consider them, or apartments, just to have a lower mortgage and pay less in interest but the thought of an HOA fee upwards of $500 kills me. Just looking for thoughts and advice on whether to consider buying in current interest rate environment or say goodbye to that thought for a while and keep saving. I know, buy a home when you want it and are ready for everything that comes with it, not as a financial investment. Anyone in similar situation, what did you do? Current rent is 1700 for 2bed/1bath.
original posted by Carrotstick5592 to r/personalfinance on Thu, 29 Feb 2024 15:27:23 GMT.