I'm 22 years old. I'm trying to figure out if I should buy a house or rent an apartment. I did move into an apartment with my friend at 19 years old for a little over a year and we spilt everything 50/50 besides groceries. He eventually had to move because he was going to school in another town, my parents didn't mind me moving back since I help pay the bills, help around the house, and cook meals also. I've also been saving since I started my first full time job at 18 and currently have about $32k in the bank and $0 debt.
Details:
I make $40,000 annually, 2-3% raise annually.
I plan to stay in the area for at least 5 years.
Houses in the area are relatively cheap, I live in Nebraska and can get a decent 2-3 bedroom 1-2 bathroom house for $100,000.
Four years work history at the same job.
If I buy a house I plan to put at least 20% down payment and preferably a 15 year fixed rate.
Credit score is 715.
My employer matches 70% on the first 10% i contribute to my 401k so I have been contributing 10% to my 401k plus an additional $2,400 annually to my Roth IRA. After taxes and everything I make between $2,200 - $2,400 each month. If I limit my mortgage to 25% of my monthly income, I would be able to buy an $75,000-$80,000 house on a 15 year fixed mortgage, and the monthly amount would be close to $600 with homeowner insurance & property taxes.
If I buy I will also need to buy washer/dryer, stove, fridge, microwave, couch, chairs, etc, etc, etc… Maybe $2k-3k budget
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