When I was in my early 30’s, I was not a homeowner either, and just before I hit 30 was the time when I stopped renting condos or apartments and rented a nice house with a roomate. That is what I would suggest.
Rent a house in a neighborhood you like, and if you can deal with it, get a roommate.
Perry said rent a house for $2500. With a roommate, I’d go for a $3K place and split it. Without a roommate, I’d go with a $2K place, but then again I live in Clairemont so I’m cheap.
If you live in UTC condo hell and like SEH, our tastes are totally opposite so I won’t give you any advice on where to rent, but find a house.
Also – take the difference between your rent and your expected house payment (financed at price less 20%. Include insur and prop tax in the house payment) and put it in the bank. This will help you build up your down payment, let prices fall, and get you used to paying a house payment every month. I think you may soon find you don’t like it and will rediscover the joy of renting.
If after a year of that you don’t miss the extra cash, you may well be ready to buy.
If you can live with a roommmate, you may be closer to a purchase than you think. As a single guy, you can own the house and rent out a room. Just a thought.
The more your rent, the longer it will take you to save the down payment, but you will have a nicer place so it won’t be that bad.
If you do rent a house, use real estate resources to determine the financial status of the homeowner, and when the house was purchased so you don’t get run out by a foreclosure or other forced sale.
Borrowing some money from your 401K wouldn’t be a bad idea if you already had the 20%, but since you are trying to borrow the down payment from your 401K, it is a terrible idea.
Bortrowing to buy places they think they “deserve” is what gets people into financial trouble. Deal with the reality of your situation not with the fantasy of your expectations.
You don’t have to own to improve your living situation.
