Buying a house at 25

Do you think this is a good financial investment? I live in the country near a big city and I have the opportunity of buying a house at 25-26 or so. Me and my best friend of 20 years are thinking about pooling our money together and buying a two story house for 155k. To finance the loan we need to save up 13 thousand dollars each, then it would take around 10 years to pay off the mortgage together. Renting a 1 bedroom apartment in my area is a thousand bucks a month.

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At age 25-26 that is. I'm at a crossroads between renting an apartment at age 23 or getting a house with my friend in 2 years.

Typically, yes, this would probably be a good idea. But I wouldn’t buy a house right now with everyone talking about an impending global financial crash. But that’s just me.

Isn't this a reason to buy a house?

I don't know anything about the housing market, just my opinion that it has to crash or at least lower a lot some time soon. There's too much turmoil right now to buy a house, but that may change in a couple years when you're looking to buy. Also if the house is 155k, it's probably somewhat old? You're going to need extra money, thousands, to pay for inevitable repairs. It's a bad idea to buy with friends, you guys don't know if you'll have families or want different things in the future and buying a house is a long-term commitment. If you guys are gay then I guess it's fine, otherwise I wouldn't do that. Again, just my random opinion.

I'm thinking in 2-3 years time. I'm 23 and live at home so I have time for things to improve.

Make sure you try living with your friend before going all in, could ruin a friendship

never buy a house with anyone other than marriage spouse. Friends/Family will fuck you

Let's be 100% clear here. Not one person on biz, not one single person on here has a job, let alone their own home.

I still live with my parents, but I certainly have experience with living with other people.

Everybody involved needs to live up to a standard where they don't get under anybody's skin. You really gotta have enough space where you all can make some amount of noise and not bother each other and you all need to keep the house tidy. Like, you or somebody is going to fucking FLIP OUT if trash bins are always full and dirty dishes keep piling up and there is nothing clean for you to use to drink/eat with right now.

Yeah I'm a bit concerned about the families thing and wanting different things. If he wants to get a gf and move out or wants me to move out we might find a workable solution. The house will probably be from the 60s or 70s so repairs will be needed. Biggest reason it's so cheap is it's half an hour from the nearest small city, think Bumfuck Midwest. Where I live now that same house would cost closer to 280k. I looked around my state to find the cheapest housing prices and it's one of the top 10 cheapest areas.

We're looking at a house that is at least 1500 square feet. Preferably with our own bathrooms. Ideally we want a house that small in width but that has two storys so we can have our bedrooms further apart.

The real estate market isn't the stock market. A "crash" doesn't hit every single area at the same time in the same way. Unlike the stock market where a crash will typically causes every.stock to go red, the real market is actually a collection of different market across the country. Some areas may experience a decline because the residents are flooding from one to another causing a boom in that new area. If you're in a big city or major suburb, I'd worry about a crash. However if you're in a small town with upward trending population growth, a crash may never happen.


It all depends. Don't wait on crash to buy a house. At worst, you overpay a bit but still have a rental property in the future.

you buy after the crash not before. why buy the house for $155k when you could buy it for 70k?

or just wait for more boomers to die

Buy a house for 75k, then you can have a home away from home if you want to visit your friend. Start small if you’re thinking about flipping houses, whatever you do don’t jump the gun and risk it all on a house you can never pay back. Unless you’re some drug dealer and grow weed or something, I would steer clear of this in practically every circumstance

DO NOT BUY PROPERTY WITH YOUR FRIEND.

bro I don't even talk to my best friend from my early 20's. one of you is gonna get a gf who's gonna hate the other. one of you is gonna wanna party, one of you is gonna get their shit together sooner than the other, etc.

this is the most dumbfuck thing i've seen on biz today and people here are trying to get rich off of meme coins

probably not at these overvalued prices

Boomers will just pass the house to their kids. It's not like houses become unoccupied when people die. It's why we have this crisis.

I've thought about getting a house for 50k in an even more remote part of the country. The only issue would be moving away from friends and family. If I want to get a one person house in my area it would cost about 80-90k. I'll look at some different options for paying off the loan.
Yeah I'll definitely keep that in mind. We're cousins and neighbors and we have all of our friends in common so it's thankfully a bit stronger of a bond than being just friends. But you're definitely right in that things happen and people go their separate ways. Looking over the loans and housing prices would probably be best before doing something rash and locking yourself into a 10 year commitment.
Yeah it's not terribly cheap, but it's for a 1700-1800 square feet, two story house with a garage so it's bigger than what I'd get on my own as a single man.

remember, a house is also a liability
just think it through before you sign your name on a piece of paper

Will do. Thankfully I'm almost broke so I have two years to think about it.

Why are you looking to get debt if you are almost broke?

By the way, you should consider if liquidity is important to you. Your house going up in value is all good, but you have to sell the house to release that increase.

That is why many boomers who own houses are rich on paper, but poor/broke in liquid/reality.

Don't forget that one of the earmarks of the 08-09 crash was poor people release liquidity/re-mortgaging houses to actually have cash.

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I want to get to a point where I have enough to take on debt where I can cover about 10% of the house price in cash with my cousin covering an additional 10%. The biggest reason is because rents here are about a thousand a month. I figure owning a house as an asset puts me in a better place 10 years down the line than if I rent an apartment for 10 years. I need to save up about 13-20k before my bank lets me take on that much debt.

To be clear I live at home and I don't pay rent. Working a middle class job I can comfortably put away over a thousand dollars a month assuming I have no major accidents.

no one cares

Liquid or illquid is upto the individal in most cases. But I'm more of a liquid person. Then again I've took the live with my parents pill, but I'm over 200k at 22 because of that, not giving it to goys and banks.

People already talked about the family/friends angle in this thread to death, but that would be my biggest concern OP. Family do/can fuck you over and make life needless difficult when it comes to money.

Now that I think about it a bit, I think it would probably be better to get a jobb for around 100k instead with a higher initial investment. If we discover we don't like living with each other we could possibly pay it off in less than 3 years. As soon as the house is finally financed in that case one of us can move out and be bought out by the other. The major reason why I'm even considering living with him is because we both want to live and work in the same town, so we figure helping each other out with payment could make sense.

I don't know how *house came out as jobb.

If you aren't sure, DON'T. Personally, I'd not do this user. It can get messy, and living with somebody else is a big deal for one's health.

I'll have a talk with my friend tomorrow about it. I'm leaning more towards not doing it now. The only way I'd get a house now would be if we had a lot of privacy and we could pay off our mortgage very quickly.

You aren't alone in this issue btw, even with a middle class job (100k) as you put, you should be able to get something. But if you have to move to work in a place dense, then yeh its a joke user. A joke all across the world, I'm UK and we have similar issues, if not worse.

feds would never let this happen

>Me and my best friend of 20 years

Its 2020, you can say boyfriend or life partner