Can I afford a home?

I currently pay 725 in rent and manage to save about 1500 a month.

I live a pretty cheap lifestyle

You say you pay 880 a month but how much was the condo? 880 = how much of a mortgage? Obviously your rate and length of mortgage make a difference. I know how amortization schedules work but curious how much was your unit

If I were in your situation I'd consider looking for a duplex or fourplex. Of course you'd have to be willing to deal with tenants and their issues.

Easily. This is a borderline brag thread because the answer is self evident.

To those saying duplex, let the guy live. Everything in life doesn't have to be an investment.

This board has made me cynical about people advising to pinch pennies every possible way to save a few bucks for people that already save enough.

You're 29 and your net worth is $125k and are asking about affording a home.

This is a brag thread.

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Then a duplex us your safe answer.

You have s Tennant pay part or all of your mortgage allowing you to save more. Or get roommates.

Also recognize if you get married the new wife will probably make you move.

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This. I think the OP's single lifestyle lends perfectly for a mutli-unit. Live in a portion and rent the other. When he's ready to get married, he can rent the property avoiding the risk of selling in a downturn.

Clearly, OP can afford a house in that financial situation.

My .02

Assuming you don't make a bonehead purchase, building equity will be better than renting 11 times out of 10. You're stable and have the egg to avoid starting upside down. Do your homework, buy only what you can afford (including anticipated vehicle). If another income isn't near on the horizon, go for it.

Just curious, what specifics about your current situation makes you think you cannot afford a home?

This is pretty cut and dry.

You would probably cut back on that 1500/month you are saving, but if you could find a 200K house, take 40K from that 65K of savings to put down 20 percent, make the seller pay closing costs, and you would have a debt on house of 160K.

My initial PITI when we bought a new house last year, borrowing 170K, is like $1125/month. This was for a 30 year 3.75 percent fixed loan, no mortgage insurance, but paying 400/month for taxes and homeowners insurance.

Not to mention all of the fun costs of homeownership like fixing things. But you have a 10K emergency fund, would still have 25K in savings/other investments, and would still be able to save money.

So then the question is... do you want to do this? 725/month is great for rent and you are saving like crazy. No kids, no spouse, no ties holding you down. If a job offer comes that would make you pick up and move, you could do so easily while renting. Plus if/when you get married and have kids, you will have different ideas about what you want.

Now, you could buy now, and sell later on if the market is great, or turn this house into rental prop. That's not for everyone.

Depending on where you live, I think some areas are becoming overheated and if interest rates tick up some more, values may start to taper off.