What would you do? The cheapest habitable house near me would have a monthly PITI around 35% of my take-home pay. Alternatively, i could rent for about 28% of my take-home. I’m 25 and want to build equity, but worried about being house poor.

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My brother deciding whether to buy a property or continue renting is a personal decision that depends on various factors. Consider the following points to help you make an informed choice and thank me later, Financial Stability, Long-Term Goals, Real Estate Market, Lifestyle Flexibility, Financial Analysis, Risk Assessment. Ultimately, the choice between renting and buying depends on your personal circumstances, risk tolerance, and long-term goals. If buying now stretches your budget too thin, it may be prudent to continue renting while saving for a larger down payment, improving your credit score, or increasing your income to make homeownership more affordable in the future.

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What rate are you getting? Do you think you ran refinance later and lower your PITI?

Alternatively have you seen if you qualify for FHA financing to take advantage of the lower rate, again lowering your PITI.

I appreciate the insight! The houses I’m looking at are in decent neighborhoods and in a high growth city. I’m sure it would be a good investment as long as the price feels right.

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You could house hack. My nephew at 25 bought a 5 bedroom and rented it to service members that traveled. He had a bunch of buddies to help him improve the place. They had parties, but overall improved the place. He did that for a couple years then sold it and had a nice chunk of equity for a place on a river. Every market is different my market is up 10% yoy, Austin is down 16%. So we can’t really recommend buy vs rent. Some markets right now are high risk. In any given market below the median house price is least risky. I like the house hack strategy for just starting out. You might even get your rent free to help save for a 2nd house, or turbo charge debt payoff, get your retirement compounding early.

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