I'm 25 with $80,000 Saved. Should I Rent Or Buy A House?

Jason is in Miami hi Jason welcome to the Dave Ramsey show Hey better than I deserve what's up awesome I have a quick question whether I should rent or buy according to my current financial situation so on 25 years old and have about eighty-five thousand dollars in cash in the bank and I do live at home still but I definitely want to decide whether to rent or buy in the next six months good out of my friend's house okay so I was wondering what you would do in my situation very good what are you do for a living I own a photography business and an online e-commerce store and then I also have some income property two income properties in Georgia excellent next one are they both paid for yep both paid for and they produce about five about 550 in cash each so it's about a thousand dollars a month I received excellent so what is your income these days it's about ninety thousand why'd it go oh when you're 25 years old you got 80 grand in the bank yep ding ding well done well done are you seeing a young lady at this time no I'm single which is it'll be one income essentially hmm so I guess I'm worried about whether I should buy something or rent and then figure out later on in life whether I should buy I just think renting is essentially throwing away money especially in Miami where it's so high to rent but it's also expensive to buy to solve divine an older smaller apartment which would be 20% down and homeowners association every month mm-hmm so I can't really afford a home per se mm-hmm well you can you should think about how you did it but it's you're pretty industrious young guy you got a lot of stuff going on very well done very well done well I mean I'm with you you move out it within six months and get yourself established and in terms of paying your own bills and those kinds of things and it's okay if you rent I don't want you're renting as a way of life but there's people get in such a hurry to buy we're renting sometimes it's just patience and so if you rented for six months and during that time you piled up some more money and you had a real strong downpayment he caused you to buy a different property there was a better property well that would have been a good thing but I don't want you running for six years and like what I what I thought about is if I do buy a small apartment something in a small apartment essentially if I do I'll grow it in three or four years and I just rent that out and then that covers my mortgage and then I decide what to do later yeah you could you could get it paid off and then keep it like you've got those other properties that are paid off and they're money-making machines when they're paid off maybe so and then you know it's okay because here's the thing if as long as you don't buy something that can never be sold because it sucks so bad you know it just it doesn't matter you sell it if you don't like it in two years right so my son Daniel bought a home and a year and a half later met the young lady of his dreams and six months or eight months later they were married and we were actually talking about this weekend and she likes the house that he bought just fine but it's always going to be his house that he bought and so at some point they will change houses just because the old joke is is that you didn't know you bought the wrong house until you marry the girl and she tells you right that's the old joke now that Alison wasn't doing that to Daniel but but you and your girl you know your girlfriend of the future might not do that to you but no matter what you buy you're gonna change a phase of life when you do get married and have kids and you're probably gonna move again so it's okay it's okay it's an if you buy you a nice little condo there get you something going in the Miami area and it's not as long as it's something that's that can be resold that you don't get yourself stuck in something then just sell it when your life changes a little bit but it's okay it's okay we're out for six months and even before you do that but I again just number one real estates not permanent you don't have to keep it forever there's no rule that says you have to stay there forever especially if you buy care and watch what you're doing and you've been wise so far number two if you're single and you buy a house know that there's a probability that you're probably going to sell that house when you do get married later especially if you're in your twenties that that's just a high probability that's okay there's nothing wrong with that just kind of have that in the back of your head and that way you won't be upset later when that comes down the road

Channel: The Ramsey Show - Highlights

Views: 1,478,723

Rating: 4.9034557 out of 5

Keywords: the dave ramsey show, budget money debt cash, real estate, insurance, how to make money, dave ramsey, save, credit card, compound interest, buying house, buy, snowball, should i buy or rent a house, rent or buy, rent vs buy, renting vs buying, home ownership, is it better to rent or buy a house

Id: bXcP_CnhvUs

Length: 4min 49sec (289 seconds)

Published: Thu May 30 2019