Some things to consider:
- Compared to your income, your rent seems pretty low. This should make it relatively easy for you to save money. Not a bad position to be in when gearing up to buy a house. Don't consider paying for rent as "giving away money." It's not, it's paying for shelter expenses (i.e. you're not paying into equity, but you aren't paying any interest either).
- On a house of that value, your down payment should be at least $20,000 to avoid paying an unnecessary amount of compounded interest in a mortgage. The higher the down payment, the better. Mortgage interest can be a killer. You want to do everything you can to avoid having paid too much interest once the mortgage is paid off. Do the math. Calculate your total expected interest expenses vs. your anticipated increases in property value. If the numbers are out of whack, ask yourself if the timing and finances are right for buying. You'd be surprised to hear how much people end up paying for the homes when their mortgages are paid off. Imagine paying as much as half the value of your home in interest to the bank.
- From what I've heard about the U.S. housing market, there should be many deals available over the next while. Don't jump into a buyers market if you have time to strategize. Be sure to get a deal and be sure you're financially equipped to do it right.
- Do your research!
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Knowing that death is certain and that the time of death is uncertain, what's the most important thing?
—Bhikkhuni Pema Chödrön
Humankind cannot bear very much reality.
—From "Burnt Norton," Four Quartets (1936), T. S. Eliot
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