"Owning your residence is both an investment with associated risks,"Owning your residence is both an investment with associated risks, and a place to live pleasantly, so do invest for a pleasant place to live, but temper that by not getting a giant amount of debt with your new and risky mortgage. The real estate industry has many employees who are paid on commissions so their advice will always be biased towards spending more to get your residence.OP,
A) Saves as much as you can.
B) Do not buy as much house as your income peers.
Your very best investments will be long term, so invest some in your residence while also saving a fifth of your new large income for distant retirement. Higher paying jobs will have more risk when the economy slows, so first save for an emergency fund since newer employees are more likely to be laid off if the economy shrinks. Continue to save some income, even if you do get a somewhat large mortgage.
Note that if you invest only in a more expensive residence, at some point, you may well need to sell it (promotion to a distant location or at retirement) when it has appreciated highly but you cannot continue to live there. Every solo large investment has concentrated risks.
Consider continuing to live like "starving students" so you can just retire in 20 years.
I disagreed that your primary residence is an investment. This is the kind of belief that get someone to overspend on their houses and get into financial trouble.
"Your very best investments will be long term, so invest some in your residence while also saving a fifth of your new large income for distant retirement. "
In my opinion, this is a very dangerous statement. Saving 20% of the gross income by assuming that OP can be fully employed until retirement age. This may not be a safe assumption depending on OP's profession. In some profession, age discrimination exists. It is not safe to assume full employment until retirement age.
KlangFool
Statistics: Posted by KlangFool — Sat Dec 21, 2024 1:18 pm — Replies 53 — Views 4964