I live in eastern Europe, I'm 22 y.o. and I'm trying to be very frugal.
I earn 700€/month after taxes which is juuust below country average where I live.
My monthly expenses:
110€/month for rent with utilities (I split rent with my finace, + we sublease out the unused room in the apartment so thats why it's so low), although it's starting to get cold so I'm expecting the expenses to increase to around 130~ during the cold months due to heating expenses.
I spend around 100€/month for groceries and lunch
60€/month for gas
20€ for my phone and internet plan that I got stuck in because of my dad.
60-150€ for leisure activities.
No strict financial commitments.
I also freelance on my freetime, I manage to earn around 300-700€/month additionally after work and on the weekends, I work around 14-16hrs/day, 6days a week for a few months now.
After all that I have around 5k€ in my bank account saved up. I was thinking about buying a partial house (cottage) or an apartment, because monthly payments on that would equal to the amount we now pay in rent monthly, and we would own the property.
An alright-state (2,3 room renovated or newly built) cottages/apartments would require a deposit of around 6000-10000, and a 20-30 year loan which is kind of the norm around here. I would want to keep the loan to 15-20 year period max though, so that limits the kind of a property I could buy.
Theres also a possibility to buy a single room apt. (maybe even a 2-roomed one if I get lucky, they sometimes pop-up for these prices) that would cost around 15-20k, I would be able to buy that outright in another half a year to a year if I keep up my savings, and I would outright own it without my fiance (being young and all, I think it would be a wiser thing to do) But I think it might be too soon buy, as I'm still young, and my fiance wants a house because were thinking about kids eventually..
When is it a good time to buy? I wouldn't have problems renting out the property if I ever decided to move or travel, as the demand for rent is huge in this city. I'm interested in investing and I'm contributing to my retirement account with the government matching the amount I pledge, although that will change relatively soon, the governments contribution is being cut in half.
Submitted December 02, 2018 at 07:24AM by paralakas https://ift.tt/2So34p4
