My situation: -28yo single dude -Stable job with good job security -Debt-free -Live in a town with a low crime rate (there isn't really a "bad part of town") -Absolute maximum budget of $175k -still need to save up for a down payment before I make any real decisions
Option 1 - Buy tiny cheap home, upgrade soon: Buy the cheapest thing I can find that's livable, probably costing around $50k, 3-bed 1-bath with no garage, and 900ish sq feet. After a down payment, I could pay that off in a couple years and after having lived there for 5 years I could afford to upgrade to a more comfortable $100k home without having to take out a loan (then later upgrade to a "permanent" home). The downside to this is that it may not be the most enjoyable place to live, and the maintenance costs may be high
Option 2 - buy small home, upgrade later: This would be more like a 1200sq ft home, 3-bed 2-bath, a garage, and a small backyard. Probably cost around $100k. I could probably pay it off in 5 years, upgrade to a permanent home in cash in 7 years. The downsides to this are that I'm still stuck in a loan, AND in a house that I wouldn't want to live in permanently. But I mean, a starter house isn't supposed to be permanent, right? It'd still be a decent house that I could live comfortably in.
Option 3 - buy a permanent home and start paying it off: This would be at the top end of my budget around $170k. This would be an 1800ish sq ft house, 3-bed 2-bath, big garage, big backyard, and really nice. This would be a house that I feel like I'd be happy living in for long-term if necessary. But it'd take me 7 or 8 years to pay it off (if I'm able to remain disciplined), so I'd be stuck in a loan for a while.
all those prices are based on homes for sale in the area according to the almighty Zillow
I could keep rambling, but just based on those options and that info, what would you do if you were in my situation?
Thanks, and sorry for the long post! :-)
Submitted September 28, 2017 at 11:55PM by Pinhead___Larry http://ift.tt/2fv9ykN
