Hi there, 26 year old and I am looking for advice. Right now I have a job that gives me a house. Decent 3 bedroom, 2 car garage. Could use some updates, but no sense in putting money into something that I dont own. Girlfriend and I have plans for marriage in baby in future, and would also like to build horse barn behind house on 2 acres.
We have these wants, not necessarily needs. Happy to have a roof over our heads and food on the table, housing gives us opportunity to save. In my area the house we live in would easily be $1,000 per month. House value with 2 acres would be $200,000 (estimated)
Current salary = $48,200
Take home pay = $31,818
Contributions to ROTH = $5,500
Contributions to SIMPLE IRA = $4,800
Work contributes = $1,446
Spending Habits = $1,400/month or $16,800/year
-(Insurances, fuel, utilities, food, dog, projects, pleasure etc.)
No debt
LEFT OVER = $9,518 / year.
(All figures are myself only)
I have the opportunity to buy the house, but for one I'm not sure if I would get a raise in pay since the employer wont have housing expense anymore. If I bought it, put money into it, house value would increase. I would have a mortgage, so that money would need to come from retirement contributions or elsewhere. We tend to eat out more than we should, not no more than the average individual.
What I'm trying to ask, is it better to own a home and make more money from it in the future? Or live in housing and save save save hoping to come ahead that way. I figure the house is $12,000 under the table pay to my salary. By buying the house I would need to get that $12,000/year in my paycheck, but not sure employer is willing.
Thank you