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Is this a good time for a young professional to buy property?

Hello. I'm a 25 year old, single male making around 60k a year. I have a +700 credit score and no negative reports. 2 months ago I paid off a 22k auto loan before the end of it's term. I also have a great employment history. Recently I've been thinking about purchasing a home and I discovered a great condo near my current residence which I believe I can get for under 240k, parking included. Given my personal history (debt, credit, income, first time buyer), do you think this is a good a idea at this time?


Jan 11, 2012 by Sean from Portland, OR in  |  Flag
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3 votes

Now is a decent time to buy real estate in many markets. But before you do, you need to make sure it fits your overall goals and plans. If this is to be your personal residence, do you like the place? Do you plan to stay in the area for some time? Or, is it likely that your job will take you to a different city? How would this purchase fit in the overall scheme of your life? If this would be an investment property, you must determine the relationship between your outlays, and the probable income. Ideally you'll have positive cash flow. Perhaps a larger question would be: Do you want to be a landlord; to deal with Toilets, Trash, and Tenants? Finally, remember that real estate is not liquid, and the cycles tend to be long. If you can't or don't want to stick it out for a long period of time, then you might want to pass. These questions can give you a good start toward evaluating this purchase. Good luck!

Comment   |  Flag   |  Jan 12, 2012 from Arvada, CO

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It's all about choices. Real estate really is a lifestyle issue. Your primary residence really should not be considered an investment. If you are considering this as a rental property, then you'll need to consider the "toilets, trash and tenants" issues previously raised.

While prices and interest rates are certainly low, you really need to consider that you are young and new in your career. Your job prospects may change especially if you are in a position that may require a transfer or open to an opportunity in another region. You may decide to get married - or not - and this will have an impact as well.

At least as a renter, you'll have the flexibility to consider these choices. If you are locked into a mortgage, you may not be so open to these other opportunities.

Comment   |  Flag   |  May 17, 2012 from Amesbury, MA

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