Looking to buy early-mid 2024. On an apartment lease until June 2024.

Estimated House Price: $450k
Predicted 30y interest rate: 6.5%. It's 7% in my area now, but predicting it'll go down a bit. My credit score is about 800.

Total Liquid On Hand At That Time: Probably $95k. This is everything that's non-retirement.

I'll be short the 20% down obviously. Have to consider furnishings, closing costs, moving costs, emergency fund, some damages from current apartment, possibly also having both rent ($1750/mo) + mortgage for 1-2 months during the transition.

Zero debts outside of future mortgage. Own my car outright, no student loans, credit cards paid off, etc.

Grossed over $170k in 2023. I am, and would continue to live in, a state without state/city taxes. Anticipating similar or slightly less income in 2024 ($150k+ gross is a safer bet).

Does all this make sense, or is buying a house in 2024 an irrational idea? Maybe I should be a rentcel till 2025?

Hard to predict the future boyo.

if this is a long term decision, do it. if you may have to move in 1-3 years, you need to be prepared to possibly lose money if you need to sell

find a local agent that sells a lot of homes. have them set you up on a search now so you can be watching inventory and prices

if rates continue declining little by little, prices will rise again. you'll be buying in peak real estate inventory season too

What are the yearly property taxes? So far it seems on the high end, but within reason.

Hate to say it bro…

If the mortgage and property tax combined ends up being more than renting (calculate for a year), it makes no sense to get into a mortgage.

The interest rate is crazy right now making mortgages unrealistically high.

If you really need to get into a new home, aim for $250k. Your first home won’t be your last home unless you legit buildout your home to your taste then you’d want to make a forever home.

When you write your offer, you will have a closing day on the contract. be prepped for that so you dont have to pay for both places. no reason to do that unless something completely unavoidable happens

I am guessing from the numbers you gave you are 2-3 months out of college and just begun working full time? If so, you have a great start but not ready to purchase a home. I would suggest to work full time and focus on getting your salary up, you definitely can do it. In about 2 years I'd say you could easy save 450-500k in cash. At that point pay for it in cash.

Congrats on the new job boyo!! Srs, vry srs.

Keep saving but sounds accurate. That mortgage should be cake at your claimed income level

This has always been the case lol renting is and should be cheaper than outright mortgage unless you are buying a 150k **** shack

You have to consider more than that but a good rule to follow is that if rent is less than 5%-7% of total mortgage on a monthly basis (which is interest, taxes, utilities, maintenance, etc). So if he puts 10% down at 45k and has a 405k mortgage that's $1687 a month. If rent is cheaper, it's better to rent.

If you're looking for a forever home then it's a good idea, but judging from what you're talking about you may have kids, family so would want to move within 5 years.