Down payment on house or pay off student loans

There are a lot of variables here. Townhome ownership will cost you more than just the mortgage. Upkeep, taxes, insurance, etc will all have to be budgeted for. Some questions:
- What are the interest rates on the student loans?
- What does the housing market look like where you live?
- What are you paying in rent now?
- What kind of return are you getting on your savings right now?
- Is there something that is driving you to buy other than just fear of missing out?
- Do you need more room?
- Are you planning a change in your family situation?
- Is your rental situation up in the air?

To add to this - what's your credit score? Even with a good down payment, if your FICO isn't so hot, you'll get lousy interest rates on a mortgage. Then, it's better to pay off old debt (so, include credit card debt here) to raise your FICO so that, eventually, you'll buy a house with better terms.

Student loans usually have high interest rates and I would pay it off first.
Second, we're heading for a recession, real estate is showing signs of stagnation and reduced prices. In 2 years time you'll get a nice townhome for a lot cheaper price, regardless where you live.

You said you'll have some money left over after student loans are paid off,
put that amount conservatively into a one or 2-year CD and see if you can buy a home in 2024.

I like this advice. All the advice and questions have been spot-on, but pay off your highest interest rate loans first. They're a killer. I know because my student loans were at 10.75 and 12%! The first house we bought was at 19%, if you can believe that. Pay off the high interest rate loans! As CJ said, invest the rest in something safe but better than a bank which you can use later for a down payment.

Get the house just be aware of the following.
1. Taxes
2. maintenance
3. Other home owners stuff in the area.
4.
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So lets say your buying this property. You have to be aware of the area and why are you in that location again?

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About the student loans. Just make sure while paying for the house, you are keeping the electricity off, the water off, the gas off, everything outside of the house is off. Unless you have a roomate to pay for that.

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With student loan debt they have systems that enables you to work to pay off the debt. Various programs, banks, and more. Like you keep a "high enough GPA" and go for your masters it all gets paid off for you. Or you could work as a college professor at some random location and live in your car and get it paid off for you.

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I had college debt and these collects kept on passing the debt from collector to collector ( around the time when the debt could be forgiven ). In fact you could possible go back to the college and pay off most of the amount or even checkout if your college supports settling the amount off. Most colleges allow this or even will dodge this fact ( give you the run-around ).

Again every five-years that debt is able to be settled, or forgiven, and canceled. "You have to look this up". That is why debt collectors will contact you every five years because they will pass the debt on to another agency that purchases that debt.

Buy the property. Go for the property. #$@$$@ the debt. Because you could go directly to the office and negotiate paying off the original amount. For me
I had $950 and turned into $1300. I paid off the debt ( with anger by posting the payment via money order to the collection agency ), and even used it on my taxes ( "educational expenses" ). I do not care. My mother has $40,000 in debt. My sibling has $20,000 in debt. Their game is to wait till Biden does something to pay off the debt. I made $25,000+ in six months and had a wonderful time figuring out my life. I tried again and made $6000 ( because of discrimination at work ).

I do not really care about debt anymore. Point being is that I am surrounded by selfish people who do not want to help me. If I was you I would go for the property.

No debt is better then having debt

but

That property is going to be taken,

but

Why?

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If I could live inside a box in an alley-way just to not spend money and pay off all my debt I would.

At least you could do it inside of an actual house, that is your property.

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My mother had a co-worker who took a second job. He now have his own house. He is working back to back to make payments just to keep the house.
He does not care, because it is his property and not an apartment.

Some good advice here – some of what I considered where the estimates of taxes and insurance along with the principal and interest. I did get a pre-qualified to get an idea of what my monthly payments would be and was keeping it to be what I pay for rent or very close to it. Since I just have student loans in debt my credit score is pretty good.

The housing market had been tough, but, my worry is not missing out, but with inflation going up and interest rates – in a year I could be paying a couple of hundred more a month if they go up another percent.

I will look around just to see what there is out there as far as real estate – one thing I am afraid of is this bidding war stuff – if it comes to that I will just walk away.

Wow seeing some of these rates you mention Mame – my student loans are in the 5% range – they are all federal so the rates are lower.

Not failing to mention how atrocious the housing market is (in most markets). Would you feel comfortable getting into a bidding war for a house? My suggestion is to kill your student loans and by the time the housing market (fingers crossed) cools down, maybe you'll be in a better position to not be screwed over and perhaps get a better home for the money as well.

Buying the asset has worked since the beginning of time.

Get out of debt from any loans, CC or any other obligations. Keep the cash if you have anything left over.

You don’t know what the job market will be like the next two years.

Lastly, never buy a condo!

Sorry such important life decisions are heavily impacted by predatory student loans, likely forced on you by your shitty government.

1. Have you investigated loan forgiveness? Although almost 1% of applicants have been approved in the recent past, the government’s humiliation at being found out as villains has changed the regulations that may make this possible for you.

2. If you can wait til September without losing out on the home buying situation, wait. The current post-Covid extension supposedly ends in August. There’s a small chance Biden has been forced to forgive some or all of selected student loans. I wouldn’t want you to throw all that money away if it’s not absolutely necessary.

3. If you can’t benefit from 1. or 2., pay your debt before taking on the financial responsibilities of a new home.

Congratulations to you re: a bit of good luck!!💵

Really? There was nothing predatory when I took out my student loans. The interest rate is lower from the government and no one forced me to take one out. It was offered as part of my financial aid package and I had the option to either accept it or not. If not for the lower interest rate of my less than "shitty" government, I might not have taken out the loan. The loans offered by the government are capped as to how much you can borrow for just the reason you do not want to overborrow. It is the other private student loans that get one in trouble.

You also need to attend an online class so you understand the implications of taking out this loan - that you need to pay it off and the parameters around it. I was an adult (although a young adult) when I agreed to the terms and as such I am responsible for paying it off. I honestly do not support loan forgiveness as I took out only what I needed was thoughtful of how much I could afford. I mean I got into college so I should be intelligent enough to understand I will need to pay this off and how much it will cost me in the future.

On the other side though I am waiting through the end of August as we have the current situation where loans are being delayed (without penalty and no interest accruing) - due to covid and not because of irresponsible borrowing. So yes I am taking advantage of that and will potentially pay it off at that time once this is all sorted out.

When did you get your loans?