Author Topic: Pay off debts, or buy a condo now while prices are low?  (Read 683 times)

SecondCareerist

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Pay off debts, or buy a condo now while prices are low?
« on: October 09, 2019, 06:35:31 AM »
Currently, my debt is about 7% of my total income. While I genuinely would like to pay off ALL of my debt now that I have a much higher paying job, prices on homes in Dallas right now are pretty low.

Is it best to pay off all of my debt, and then save up the down payment for a home in this buyer's market? If I keep the debt as it is now (no interest credit card debt), continue to pay the minimum payments, I will have the down payment for a small condo in two months. If I pay off all my debt, I won't be able to get the down payment together until about four or five months from now.

I am concerned that prices will go back up as spring approaches and I could miss a bargain if I wait until then.

Malcat

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Re: Pay off debts, or buy a condo now while prices are low?
« Reply #1 on: October 09, 2019, 07:39:54 AM »
So, the difference in timeline of debt repayment would be less than 6 months????
In the long term, that really is practically irrelevant.

If you are planning to own, the math makes sense for you to own over renting, you have the money available to own, and the market is favourable, then yeah, buy a house. I seriously doubt that the interest on your debt over the next 4-5 months will add up to more than you would pay in principle payments on your new home, so you will probably end up ahead of the game in the end.

Unless you are living somewhere rent free at the moment, or looking to buy an overly expensive home...but that's another question entirely.