Hey everyone, first of all I’m grateful for this community and resource. Long time reader, first time poster.
I’m 33, no debt, no dependents, and recently started a new job making $130k base (with additional equity). I rent and comfortably live on around $3,000 to $4,000 (on the higher end) a month. I have around $80k in savings. I love budgeting (it’s fun and fascinating).
For the first time I am reasonably looking at the possibility of buying a house, even though the current market seems to be around $600k in Austin, TX. If my mortgage were around $4,000/month, I could continue to live on/around the $3,000/month lifestyle (which is pretty comfortable for me). After the down payment I would have around $10k in savings. My career trajectory seems solid at this point, and I expect to earn more in the coming years, which would buffer these expenses and savings.
I love home projects (and maintenance), and always do them anyway even at the places I rent. I think I would really appreciate and enjoy owning property. To explore, I reached out to my local bank and was prequalified for a 30yr conventional loan for $650k at 3% interest. My credit score was 807-820.
All this being said, $600k seems like a staggering amount of debt. I could also not buy a house, continue to rent and keep expenses low, save more, invest in the stock market, index funds, retirement, etc. and build a larger investment portfolio.
I feel as though I am at a cross roads in my financial life, and curious to hear any thoughts from others who have navigated this, and what their goals were/are? Thanks for reading!