Should I buy a house?

Hey everyone

A question that has been spooking through my head since almost a year now is to buy a house.

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This is probably one of the biggest investments people ever make in their life. That’s why I want to think and overthink very well about it. I’ll briefly explain my situation:

I’m turning 21 soon and I study in Brussels. I still live with my parents. Starting next year, my working hours will be 07h30 untill 16h00, working/studying 5 days a week. Due to the very bad traffic hours, going back and forth home every day isn’t an option. This would mean spending 3 hours every day in the car + it would cost me on average 16 euro a day to do the double trip.

Peak_hour_traffic_in_melbourne

Now there are 2 options left: first is stay in the school every day, just like before. However I prefer to have a strict limit between work and home. Last 3 years I already spent 5 days a week at my very small room in the school and the weekends are damn short. I feel like I don’t have a control anymore over my personal life as everything I have to fix or settle at home has to happen in a short 2 day range.

Other option is that I would buy an appartment or house in the neighbourhood of my school and my future job place ( which is 90% sure). This way I could go home everyday to my own place and have a more ‘normal’ life.

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Now my financial situation:

My complete net worth in August will be around 100,000 euro. From this there is 40,000 euro fixed in shares, which I don’t intend to sell in any case. I love my shares :D.

I earn 1,580 euro net a month right now. 2 years from now, my net monthly job income will be around 2,100 euro. I also want to keep on investing on a decent rate.

Now my question is, do you guys think it’s a good idea to buy something already? How about your costs of owning a house/app? How much do you need /month for the basic stuff such as electricity, water, gas, internet… In my point of view, renting means losing money if I have to do it alone (better to split it with someone but not a possibility yet).
Any tips?

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7 thoughts on “Should I buy a house?

  1. arakelian

    Hello, Brussels guy 🙂
    What I did: bought an apartment. With mortgage. I have no cash to buy it down, but I can deduct the mortgage from the taxes (up to 4.000 euro).
    Extra costs:
    – electricity and gas I pay: 80 euro per month, 3 persons
    -water -around 30( i think 😀 )
    – internet 25 euro
    -assurance of the house and annual tax (around 1200 euro per year)
    -taxes for buying ( notaire, revenu d’enrigstrement etc ) – up to 16% from the acquisition of the house.

    If you have a room where to stay, use it! and save the money. There will be no more this chance in the life…

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    • When Do You Retire?

      Thanks for sharing! It seems that you are doing a good job on keeping the expenses on a low level. I did the same calculation with my parents and we calculated around 2800/year to live (without food).

      You have a point in saying to stay in the room I have here to save up more. Only thing is I can’t save up as in letting my cash stash up in the bank. I hate banks. I would probably end up buying stocks every month with my paycheck :D.

      Like

      • arakelian

        smart decision to hate the banks :). I still have the money in the saving account in a bank because … don’t ask me, I have no argument for this 🙂 .

        My expenses are not in lowest level, I know I can cut some bills (mobile, less water, less electricity) IF I will reaaaly need :), until I live calm and confortable. Your estimation about 2800 euro per year are similar with mine.

        Think if you buy a house, you can share to find a roommate – but now I don’t think it is a priority for you, because you have an alternative. But to live close to the job is a big advantage to save time and do just a morning walk to your job.

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      • When Do You Retire?

        Hi, it’s already good that you have a notion on how much you spend every month. Few people have a good vision on the matter which I think is a pity.

        Living near to your job is also one of my top priorities, as the Belgian traffic is known to be very slow (especially Brussels) and I don’t want to commute 3 hours a day.
        Cutting some bills could give you more savings, but then again offers have to be made. Are you really willing to sacrifice those long, hot showers or your mobile internet for a couple of euro’s a month? For me it has to balance out between money and comfort.

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      • arakelian

        In case of a difficult financial period I can reduce and eliminate some bills, but not for ever. Now I don’t pay attention how much electricity I consume, about hours (I have a night program when is lower), about water, stricter control on food and better management of washing clothes, take the child earlier from the school, prepare all the lunch boxes etc. but when I was in holiday for 4 weeks I noticed all the regular expenses gone down with around 500 euro just because I had time and patience to do everything smarter.

        Now I pay for convenience 😉

        Liked by 1 persoon

  2. Vivianne

    If you can buy a house/condo with multiple bedrooms to rent out, I’ll definitely buy it. But if you buy a 1bedroom, and it cost way more than living with your parents, I’d reconsider.

    I’ve always have roommates, ever since I bought a house, I never have to pay a full mortgage, my payment each month would always be lower Othman if I were going to rent.

    Liked by 1 persoon

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