Hi there,
Here is my current financial situation:
I have ~30k in student loan debt and about 15k (@3%) on the car (upside down on the car, but close to breaking even). I have 2 months salary saved as well as 1k in a Betterment account (which i contribute 200/mo). I currently pay 1k/mo rent + utilities, etc but am able to save 1k/mo. I was considering saving for a down payment on a 2bdrm condo or small house, in which I could rent out space to a close friend or two (who are also overpaying for their 1 bedroom apartments in Denver). My internal arguments are thus:
Save for house first before paying off loans: loan payments are well within my budget. By moving into a house/condo where I could rent a room, I would be able to minimize my cost of living which would free up money for paying off loans. Would take about a year (as I just renewed my lease).
Pay off loans first: Frees up more money to save for a home, spend less in interest, but have to overpay for housing. Would take 1.5 years to pay off car loan in full then another 2 years for student loans (all the while rent seems to go up by 100/mo each year).
On one hand, locking into a mortgage next year could lower my rent to 0/mo (if I rent a room to a friend) which would free up an additional 1k to pay off car quicker. On the other, its another debt that needs to be paid.
Thoughts?
Thanks,
Jordan