i’ve grown too old to still be living at home. my parents baby me and it’s really hindering my growth as an adult and i want to be completely independent. i’ve tried to pretend that renting my room but since i’m asian, my parents always find a way to treat me like a kid still, most likely because i’m the last of my siblings to still live at home. ive been in my career for the last three years, i’m debt free, i have k saved up. i’m quite frugal and save pretty much over 50% of my paycheck.
i’ve thought about moving into an apartment but knowing that i’m throwing away 00-1500/month kills me. and i don’t want to move in with a room mate otherwise there’s no point in moving out to be on my own.
i was looking around my area and found a few "condos" for 0-225k. they’re not entirely condos but more like renovated apartment complexes into condo units. i’m guessing if i buy one and live in it for even a year or two, i’t'll still be less than renting. here’s my estimated math:
buy 0,000 condo
30 years ~4.75%
-,000 down payment
-00 (includes 2/month mortgage, 0/month fees, 0 misc)
if i live there for 3 years and decide to sell the house (lets say the house will hold its value at 0,000) i’ll have spent about ,000 for monthly payments (1500×36), the payoff will be 6,000 (after using an amortization calculator). so 54,000+166,000 = 220,000. so it’ll only have cost me ,000 to live there for 3 years which turns out to be about 5/month.
does any of that make sense? it looks easier on paper lol. sometimes i get my hopes up and come up with these plans so i was wondering if anyone sees a hole in it.
my current take home income after tax is 00/month. my credit score has been 740 the last year. i anticipate to advance in my career in a at least a year and that will bring my take home income to 00-4000/month.
i have k that i’m holding for my parents so that’ll be my emergency fund, but hopefully i’ll never have to use it! 
i’ve been to my friends’ places and have an idea of what i want in a place. i’ve jotted down notes the last year on my phone as well.
i don’t want to break even, i just want to decrease the cost of living on my own so hopefully the place i end up buying, if i do, will not depreciate a great amount. as long as it holds value or appreciates, the cost of buying will be the same or less than the cost of renting over the five or so years.
Because of the transaction (closing costs) that you will have in buying and in selling, it would be best if you plan on staying there for at least five years or longer.
Buying is best long term as long as you have the place checked out, you buy in a great location-building, you check around and compare prices and see how much others have sold for recently, and you stay there long enough.
It is always easier on paper, but I really think you will be fine. The fact that you have that much money saved up, and continue to be able to save that much of your check, you are better off financially (and I would say mentally) than 99% of people our age. When you do it on paper though, always round way up and just add money to the end. I would also look closely into how much you would be able to save if you buy, and if it’s not much, think about not putting all 25,000 down, and keeping an emergency savings fund, that you can flip into retirement if you don’t need it.
When you talk about "throwing away" rent, that doesn’t really quite add up. The interest you pay on a home amounts to the same thing. So throw that logic out the window. I think you might be forgetting about property taxes, renos, etc. Oh, and don’t forget about everything else your parents pay for now. Like food, I’m assuming, among other things. Also, why are you talking about $1300 – $1500 rent just for yourself at your age? That seems like a LOT for a 25 year old who is moving out for the first time, even if you do live in a high priced city (unless you live right in Manhattan I guess). Also, since you’ve never lived on your own, you have NO idea what will really suit you as far as living arrangements go. I think you should just find something to rent (at a REASONABLE price at first), and take that time as a practice run. Even if it’s just six months or something. I think it would be a mistake to just leap from momma’s nest to ownership before you have any experience living alone. Move out, find out what you actually want or don’t want in a home, etc, learn more about what your living expenses outside of rent or mortgage/taxes/fees will be, come up with a real budget rather than a fantasy budget (trust me, whatever you think you will spend just on living is less that it will actually be), and then think about buying once you have a clearer picture.
It sounds like you’ve "run some numbers" concerning home buying costs. However, you do not want to blow 100% of your cash savings on the down payment – that would not be wise. Also, you fail to state anything about your income or credit history – which will be huge factors in qualifying for a mortgage loan.
In the current economy, you should not count on being able to sell it and even break even within three years. Unless you can commit to home ownership for AT LEAST 5-10 years, don’t buy.
Have you read "Home Buying For Dummies"? I highly recommend it.