Hi everyone,I am 23, currently working in Austin, TX as a Environmental Engineer, and living with my parents.
I have no debt and a salary of $80,000. I believe my job is stable, and I passed my PE exam so once I get my years of experience I will have a larger pay jump. I'm diligently saving, maxing out my 401k, Roth IRA, and HSA, with around $60,000 total in the retirement accounts. My monthly expenses, including eating out, concerts, gym, phone, car insurance, and helping my parents with some bills (etc, etc,etc), amount to approximately $1,200. Everything else goes into my HYSA. I currently have $40,000 in a High Yield Savings Account.
I've been living with my parents my entire life (commuted to university from home) and now I'm eager to move out and establish my independence. They prefer I buy a house rather than rent and "waste money" and have offered to contribute to a down payment of $30-50k, though I'd prefer to manage without their assistance if possible.
The "cheaper" houses around in Austin are in the $450-550k range. However, this seems daunting. I'm considering the option of having roommates to help with expenses, but I'm cautious about the potential risks involved if they decide to move out suddenly.Any advice on whether buying a house is feasible for me in this HCOL area? How much should I save (emergency costs for home repairs, etc)? Should I go for 20% on a down payment? Is now even a good time to buy? Is it worth buying a home if I can no longer max my retirement accounts?
I am willing to stay at home for as long as needed to make sure I make the right financial decision - but I also feel like I am wasting my early 20s living at home with my parents.Thanks in advance for your help! Let me know if you need me to provide any other information! :)
original posted by Xaegar to r/personalfinance on Wed, 28 Feb 2024 03:18:39 GMT.