Tuesday, October 6, 2015

Need money advice - should I buy an apt? - Dave Ramsay style! (not in debt)?


Hi.
I'm not from USA, I'm putting here prices that are not in USD, just putting numbers to give you more idea about my situation.
I'm a single girl, a doctor with guaranteed job for the next 4 years making 2,2k monthly. With a side job that can make me 2-4k monthly (shitty job - doing it for money only)
I live with my parents, but lately they told me to move out. I'm thinking about a small studio as I don't need much. Price of buying such an appartment would be 150k, cost of renting one, about 1,5k monthly. I have somewhere around 10k in savings, but it's already "booked" to be spent on exotic holliday. My parents encourage me to buy and say they'll give me 20k for downpayment, and if I want to buy I can live with them for the next 6 months to save something more. But if I want to rent I should move out from the 1st January. Should I buy and get in debt or rent and stay debt free?

Pluses on buying: I'd be able to pay for the apt in 5 years probably and then it.
Minuses on buying: there would be so much more to pay for while owninig an apt, furniture, painting, probably complete renovation of bathroom and kitchen, so no cool vacation for me for the next few years, and honestly - I don't like the idea of not making my dreams come true because I need to pay debt.
On the other side, renting in our country is horribly overpriced, if I wanted to rent for the next 5 years I'd pay half of the apt price…

buy? Rent?
Added (1). Yeah, but I;m not tlking about living in 30 sq m apt for the next 20 years. The loan will be for the next 10 years (mortgage above 1k mthly), adding other mthly payments it woul easily add up to 1,5k (same as renting) AND I'd be saving as a crazy cause I'd like to pay for the apt in 5yrs. Plus plenty other payments (renovating). Meaning that I would be living the life of a borderline poverty while working two jobs and making a lot of money with zero personal/social life. It' really not that easy.
Added (2). Yeah, I know renting is throwing away money, but it gives freedom, which I would love to have (like not working a job I don't like)

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