Hey all,
If the goal is to retire in 7 years, does it make sense intuitively to switch from renting to buying a townhouse? This is a risky proposition, in that there is no guarantee of appreciation and we could be in the middle of a recession in 5 years. My capital would be tied up in a pretty iliquid asset. However, the same concern could be said of the stock market. 2024 could be like 2009 and wipe out a lot of my NW.
Anyways, my situation is that I'm 28, in a live-in relationship and have great career prospects, but I live in the expensive DC metro area. My current financial situation (assuming I continue to rent with modest increases) indicates that I could retire in ~7 years.
I could buy a townhome for around $400-$450K, and with my SO contributing to the mortgage, my monthly housing expenses (including maintence reserve, utilities, etc.) would be around $1,400. My current rent is $930. Has anyone else made this determination for themselves? I'm tired of apartment life but don't want push back my retirement timeline because of emotional reasons.
General comments/experiences/advice is appreciated. I'm not asking anyone to do my analysis for me - I'm a bit of an Excel jockey and will do an in-depth financial analysis. I think the fundamental question is which asset is better for a 7 year timeline: stocks/bonds, real estate, or cash.