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One of my best friends bought a house the moment he got his first job. His dad fronted the down payment, and he paid the mortgage. His dad's reasoning was simp
by spaceman_2020 4y ago
One of my best friends bought a house the moment he got his first job. His dad fronted the down payment, and he paid the mortgage.
His dad's reasoning was simple: he graduated from a good college, and by all accounts, he was going to have a strong career ahead of him. It was almost a certainty that he would make more money in 10 years than he was making currently. The mortgage might be XX% of his income at 22, but at 32, it would be just X% of his income.
It took a toll on his finances early on in his career, but by the time he reached 33, he'd paid off the house. Now he's starting a family and he never has to worry about saving for a house or paying off a loan.
So depending on your situation, it really does make sense to take on a heavy loan upfront, especially when you have a strong career ahead of you.
- yafbum 4y agoDepends a lot on career and how mobile you want to be. What do you do when your career is promising according to your diploma but there's a stubborn local economic downturn? Or when opportunity for making twice the money in a more interesting job opens up in a city far from where you are? If you're going to stay put no matter what, then sure. But otherwise, homeownership is a burden for job mobility. Being mobile allowed me to find a better job that requires about the same work but pays about 4x what I made in the city where I started. I saved too, and stock rose enough that I don't feel bad about not buying a box of bricks earlier.
- spaceman_2020 4y agoMight be unique to my country, but there are realistically just 3-4 cities that have the kind of high-paying tech jobs my friend was interested in. And most companies have offices in these 3-4 cities. You can easily spend your entire career in the same place.