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Do the math and decide whatever fits your finances. Nobody from here will be able to tell that and if they do, they are lying.
In a lot of cases it makes more sense to buy than to pay someone else’s mortgage, however, there are plenty of situations where it doesn’t. There are so many things to consider like your family or future family, income, debt to income ratio, emergency funds, credit score, down payment, location, blah blah blah. You really need to look at your complete picture and not feel pressured to buy a house right now. And if anyone over 50 is telling you to buy a house, just know the times we are in are not the same as when they were buying houses. Do you, but know your full picture.
Hard to know without knowing your take home pay
Depends on if you think we're on the brink of a 'great depression' or if things are going to be fine... good luck with the calculus
Are you saying the options are either 1) increase your housing costs to $5.5k, or 2) keep renting at $2.6k?
You are more than doubling your housing costs... and we haven't even factored in the cost of maintenance and home repairs.
The answer here is obvious take that $3k a month extra and invest that $ into VOO or robo-managed trading account until you can buy cash (at these mortgage rates) or buy when mortgage rates go down.
If your lodging costs satisfy your needs. Don't listen to those who are house-poor.
Besides, by increasing your housing cost that much (mostly going into interest lmfao), you access to that $ is tied to your home.
Btw, this is from a person who has historically preached about the benefits of home ownership. (I have two properties, one of which I rent). But both mortgage rates and home prices are so high right now. One of them will be crying uncle soon!
This is the answer. We own our home (also Phoenix!) but honestly even though everyone says home ownership is way, if you rent and then invest the difference in ownership (maintenance, repairs, HOA, etc.) over your life you’ll come out ahead. It’s just that no one invests the difference every month.
You provided zero context on your earnings and other debt
I’ve been in PHX for almost 13 years…. Buy!! Prices here are still low compared to other areas. It will only go up…. It has for 13 years. I’ve made about 250k in equity in the house I bought 2 years ago.
Subject Expert
D3 - in AZ?
If you make 80k a year no, if you make 800k a year it’s fine. Maybe provide some more info if you want actual opinions on this potential purchase.
How secure do you feel in your job? There’s a strong chance we’re in a recession with high unemployment by the end of the year. Is now the time to rent to take on a big mortgage?
I’m holding off on purchasing a single family and staying put in my condo while I save as money $ as I can.
Sorry. Here are few additional info
$250K take home/ year
Debt around 50k (car loans)
First home buyer
Current home is around 2000 sq ft (rental).
Not actively investing in market
Close to TSMC (that’s why it is 900k)
Saved around 200 K so far
Job is ok so far, don’t see any problems
Seems like a stretch financially but doable. Is your plan to stay in this house long term? Do you plan to get married with kids? Or already have? If you’re single why not just keep your costs low and keep saving?
Do not exceed 35% of your income. It used to be 20%, but with the changes in rates and prices I would say 35%. Eventually, once you have some equity (also, but with as little down as you can) you can either refi the rate or term.