I'm 22 and don't know if I should be buying a house or renting an apartment. This will be my 2nd time moving out of my parents house -(I moved out at age 20 when me and a friend wanted to rent an apartment. About a year later he had to move out because he transferred to another school. So I moved back in with my parents, they didn't mind, since I pay my share)-. I didn't think that moving BACK in with with the parents would be that bad, but it wasn't really the same feeling I had the first time I left. I mean, it's cheaper and everything, but it was kind of degrading. So. It's time to move out.
Houses in the area are pretty cheap. If I buy a house it will be around $75,000 for a decent 2 or 3 bedroom and 1 to 2 bathroom home. I make $40,000 before taxes per year and have just enough for a $20,000 down payment, plus 6 months living expenses, plus the closing costs… But hopefully negotiate on closing costs. And I'll need to buy furniture etc. The monthly mortgage for a 15 year fixed rate on a $75k home would be around $600 including property taxes and homeowners insurance, which is close to 25% of my monthly take home pay. And I could possibly get it paid off in 7-8 years. And I plan on staying in he same area for a long time (5+ years).
If I rent, I can rent for $550 per month and I can also save a lot more money due to not having to pay property taxes, homeowners insurance, water/trash, maintenance, lawn care, etc.
I'll be living by MYSELF for the first time.
Read more: Should I buy a house or rent an apartment? - 1
