Current Income: $52,900 annually (But I got a raise that goes into effect today! It amounts to approx $300/month for $56,000 annually)
EDIT: My monthly take-home pay after deductions for insurance, taxes, and 401(k) is $3,064. Of that, I have $400 directly deposited into a Roth IRA, so I see $2664/month. The property tax rate in Austin proper is 2.38%.
Current expenses: $800 rent (sharing a rental house in Austin, TX), utilities average $150/month (I pay half), phone $50/month, groceries & eating out averaging $490/month (include personal care and household products), Internet $40/month, $30/month hair care, $12/month rental insurance, $100/month average for fuel and car maintenance, $58/month car insurance, $125/month clothes, $14.50/month gym (reimbursed by my insurance at year end), $15.00 Netflix, $18.00/month lawn care, $35/month medical, $150 gifts, $464/month retirement savings, $167/mo. travel home to visit family
Total: $2,643.17
Assets: $11,500 cash in MMA, $1,000 in checking, $48,000 in retirement savings (When I get the raise, I expect to increase retirement savings, so I want the mortgage or rent to be based on the old $52,900 salary.)
Total: $60,500
Liabilities: no debts (I use a credit card for above regular expenses, but I pay it off every month.)
Specific question: Roomie and I are going our separate ways. Option 1 is to stay in this house and find another roommate, which scares me. Option 2 is to get an apartment by myself. Option 3 is to buy a house. I can find an apartment for $800 by moving further out of town, but that means longer commute, longer travel to see friends, etc. Rent is increasing quickly in Austin now (some estimates said 5-7% each year between 2012 and 2014), but so are home prices. One estimate said that home prices in Austin are overvalued by 16%!
Should I rent or buy?! Rent calculators say I break even in 5 to 7 years when I check with conservative numbers. I feel okay with a 3-year commitment (I want to believe I could move out and rent out the property if I needed to); this calculator at the NY Times says I should rent if I can find something for less than $897/month (
http://www.nytimes.com/interactive/2014/upshot/buy-rent-calculator.html?_r=0&abt=0002&abg=1), which is more than I pay now but less than many of the apartment complexes in the area.
I know I don't have enough money for a down payment--I'm thinking of taking some of the $11,500 cash savings (my emergency savings) and combining it with $7,500 down-payment assistance I can get from the state of TX to get a loan. This interest-free loan has to be paid back if I move in fewer than five years; after five years I would have to pay a prorated amount. After 10 years, it's entirely forgiven.