I’m 32. I have $80k saved. $40k currently invested. Then ~$50-60k in 401k. My plan was to save for a house, but prices have skyrocketed. As life returns to normal...I need to now move out from my parents’ again. Do I bite the bullet and rent in NYC, or stay and save another 12-18 months and hope to buy something? Full transparency: taxes make it very difficult to buy. It’s not the down payment, it’s the taxes.

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Why are you sold on buying? There’s no rule you have to buy before you’re 35. Rent in the city, date a bunch, start maxing your 401k, save more for a down payment. When you’re ready to buy the market may be in a better place. It honestly doesn’t sound like it makes sense for you right now from either a social or financial perspective.

likesmart

Housing in hot markets likely isnt coming down in the next 12 months. You might be waiting for years at your parents and suddenly be 35 still living with your parents…and if taxes are the issue, they are not going anywhere either.

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Where in NY are you looking to buy ?

It’s...strange. You’ll meet younger girls out at bars, or older women who are married. NYC has a lot more to choose from

Is moving somewhere cheaper an option?

I’ve considered it. Jersey/Jersey shore intrigues me, but it’d be the same commute if not worse and I don’t know anyone in Jersey, really.

I’m very confused, what is it about the taxes that’s difficult to buy?

Ahh okay I figured you meant RE taxes - I live in the city and understand what you’re going thru, it’s a tough decision but if you keep renting you’ll be paying for it regardless. If the monthly expense is too large, try getting the taxes not included in your mortgage if you’re worried but monthly expenses, tho this will take a lot of will power to save throughout the year.

Do you mean property taxes? That should automatically be factored in on whatever house you’re buying. It’s not just mortgage and interest you plan for in your monthly payments.

Not sure how much staying at home would help. Assuming you’re able to pocket another $60k by staying at home, and you put that straight into the mortgage, your monthly payment is probably $300 per month cheaper.

You also get tax credits for payments towards mortgage interest but I’m not sure how much that works out to and probs wouldn’t help you month to month.

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