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Author: rob1ee Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 308542  
Subject: Re: What to do next Date: 2/10/2007 3:30 PM
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Wow- my first post, but I thought I had something useful to add. As folks have mentioned, the decision to buy a house has a lot to do with whether you WANT to own a house and all that comes with it. When I came out of college and moved to CT, I really didn't want to buy a house (and wasn't in a great financial place to do so), but I had a dog and really wanted a yard for him. So I scrounged and hunted and because I was lucky and the housing market was in a major slump, bought the cheapest 1 bedroom I could find in a decent area ($84,000- and realtors told me you couldn't find ANYTHING under $100,000).

At work- a friend of mine told me she'd bought at a market peak over 7 years back- and with the crash, she couldn't currently sell her place for enough to cover the debt.

Fast forward 7 years- the housing market exploded and I sold my place for $190,000. And it was really only those last 3 years that saw the market go up significantly. (And it has since dropped.)

Which boils down to- watch what the housing market is doing! I plain lucked up- I credit my dog with my good fortune. With the market dropping, no e-fund, no dog (heh), and no down payment sufficient to avoid PMI- I don't see much reason to buy.

On the other hand, I like the idea of not putting everything on paying down the really low rate student loan and instead socking away money for a down payment when you do decide to buy. Once you start thinking about getting a dog, take a hard look at the market and get a feel for whether it would be a good time. (And this applies more to some markets than others- now I'm in NC and you just don't see the massive fluctuations that happened in CT.)

You're in a great spot- I envy you your student loan rate!
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