Afford Anything Q&A: We Saved $1.2 Million But We’re Still Renting. Should We Buy?
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Jun 10, 2025 A couple debates whether to buy their first home after saving $1.2 million, weighing the financial implications of homeownership against their journey to independence. Listeners explore real estate dilemmas, from the challenges of being a landlord to the potential of distressed versus move-in ready properties. On the retirement front, strategies for effective tax-efficient withdrawals are discussed, ensuring a smooth transition into retirement. The conversation also touches on consumerism and its societal impacts, adding depth to the financial dialogue.
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Rent First To Test Neighborhoods
- Rent first when moving to a new area to explore neighborhoods and avoid rushing into buying the wrong home.
- Use short rentals as test drives to find your best fit before making a big purchase commitment.
Make Full Down Payment, Use 30-Year Mortgage
- Put down 20% on your home to avoid PMI and reduce monthly mortgage payments.
- A 30-year mortgage grants flexibility to pay off the loan faster or slower depending on your finances.
Save Extra While Renting First
- While renting, save the difference between rent and anticipated mortgage to adjust to your new budget.
- Prepare financially for home-related expenses like furnishings and repairs before buying.