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If you work from home, consider the home office deduction. It's a powerhouse of a money saver. Most people don't research it thoroughly and don't realize how much this can save you. As long as you document properly, you can generate some really good tax savings, on top of your deductible mortgage interest and property taxes. Study up on this.
Document as in pictures of the office? Does the office need to be used exclusively for business?
You should buy. And you might want to seek advice in the MA forum, as yes, prices in Boston are insane. (We just moved here from PA and had to pay almost 3X what our old house was.)
Boston is somewhat unique because there is growing demand in terms of the job market. Businesses are moving here, and people do want close into the city. Despite the high prices, I still think buying here is a solid plan.
Especially if OP would be paying less than he is in rent, and if he rents out rooms to roommates, it's almost a no brainer.
You should buy. And you might want to seek advice in the MA forum, as yes, prices in Boston are insane. (We just moved here from PA and had to pay almost 3X what our old house was.)
Boston is somewhat unique because there is growing demand in terms of the job market. Businesses are moving here, and people do want close into the city. Despite the high prices, I still think buying here is a solid plan.
Especially if OP would be paying less than he is in rent, and if he rents out rooms to roommates, it's almost a no brainer.
I try not to factor in the roommates since theres no guarantee its consistent/for sure. But regardless it is still likely and depending on the place I buy, the mortgage could certainly be cheaper.
Prices are insane here, but they seem to keep going up. Im worried if I wait there will actually be nothing remaining at an even somewhat acceptable price.
I really don't understand how people afford these places to be honest. I feel like the majority of people I bump into around here make 20-50k, yet someone is buying these places. Guess they just buy muchhhh older/split with their significant other.
I try not to factor in the roommates since theres no guarantee its consistent/for sure. But regardless it is still likely and depending on the place I buy, the mortgage could certainly be cheaper.
Prices are insane here, but they seem to keep going up. Im worried if I wait there will actually be nothing remaining at an even somewhat acceptable price.
I really don't understand how people afford these places to be honest. I feel like the majority of people I bump into around here make 20-50k, yet someone is buying these places. Guess they just buy muchhhh older/split with their significant other.
That's certainly valid, although if you end up in a desirable town (Newton, Brookline, Cambridge, Somerville, or Boston itself), with housing in such short supply and so expensive there will always be people who need roommates, even at ages when in most other cities people have moved past that stage. So I don't think there will be a shortage in the supply of potential tenants/roommates, although there could be a question of whether you want them.
I think your concern about prices continuing to climb is valid, especially since what is driving up the prices is largely continued employment opportunities rather than speculation. (But of course, there is never a guarantee.)
There are definitely people who wait until they are older, marry someone who also has a good job and combined the couple makes a huge salary, people who simply already make a huge salary, and a good chunk of foreign nationals who are able to pay for houses in cash.
It is crazy -- people in our old area were shocked at what we paid for our place and how there were houses in our consideration set that had no garage. People were like, "No garage? In Boston, where it's cold? For *that* price?" Every house in our old 'hood had, at the very least, an attached two car, sometimes even three car garage. In our new area, plenty of places have no garage, a detached garage, or at best, an attached one car garage. None of the houses in our price range had attached two car garages. There are many houses around here with them, but at twice (or more) what we paid.
Anecdotally, we've known of several people your age who did exactly as you were contemplating and it worked out very well for them. My mom worked with a man who did this, and he ended up being able to buy a *very* expensive house when he did get married, because he did so well with the real estate he had and having roommates to help with the mortgage (this wasn't in Boston but was in another high demand Real Estate area).
Document as in pictures of the office? Does the office need to be used exclusively for business?
It does. But you can also deduct square footage of the path to the office. So if it is upstairs or in the back of the house, and you can deduct square footage used to access the office in figuring your business use proportion. You can also deduct a portion of utilities, etc.. It is fairly complex and rule-heavy, but definitely worth it as it helps you keep more of the money you earn.
Anecdotally, we've known of several people your age who did exactly as you were contemplating and it worked out very well for them. My mom worked with a man who did this, and he ended up being able to buy a *very* expensive house when he did get married, because he did so well with the real estate he had and having roommates to help with the mortgage (this wasn't in Boston but was in another high demand Real Estate area).
Its just annoying since I feel like Im wasting my life/time/money until I buy a place, yet if I do buy a place now I simply don't think it'll be a satisfying property. I guess settling on a place for the financial gain it would provide is technically a good decision, it just feels a little anticlimactic for the fate of my hard work/life savings.
It does. But you can also deduct square footage of the path to the office. So if it is upstairs or in the back of the house, and you can deduct square footage used to access the office in figuring your business use proportion. You can also deduct a portion of utilities, etc.. It is fairly complex and rule-heavy, but definitely worth it as it helps you keep more of the money you earn.
Well once I get a place I will be all over these ways to save some $
You've got no idea how badly I want to be able to indulge in that hobby lol
Just buy a 2 or 3BR Ranch or Cape with a garage and a basement and a small but usable site. Consider it training wheels. Even what you might now consider junk in the grand scheme of things will give you most of the fun of a big house and the exact same opportunities to learn all the ropes of homeownership. Without the risk. Why wait?
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