Traveling vs. Buying a house at my age

[katycloud]

So my boyfriend and I have been together for just over 5 years and we have decided to save up for a house deposit. We are fairly well on our way with $30,000 saved up so far, and are thinking that we would like to have our deposit saved and start looking to buy in about a year and a half time (which means our ages will be 24, 25).

 

Anyway, I have mentioned this ambition of ours to friends/family in conversation and it's interesting the kinds of reactions I get. At work the other day one of my colleagues (female, aged 31) asked me if I was doing anything on the weekend. I replied no, that my boyfriend and I are trying to save money. She asked if we were saving for anything in particular and I mentioned how we want to buy a house in the next year or so. She was shocked, saying stuff like "You're so young! Not even I could afford to buy a house at the moment! You haven't traveled!" etc etc etc.

 

There are also a large number of other people my age who are determined to travel the world before they settle down and can't really understand why my boyfriend and I want to buy a house. I have traveled extensively through New Zealand (lived there for a year and backpacked for 3 months) and also extensively throughout Australia. I have not however, traveled any further out of Oceania, and people find it weird that I do not want to travel more before I buy a house.

 

What do you guys think? I didn't think 24/25 years old was THAT young to be buying a house/settling down - yes it is younger than the average today but if you're in the right situation then why not? I have done lots of extensive traveling around this part of the world - no I have not been to Europe or America but I'm quite content with the fact that once I get a mortgage I may not be able to visit these places for another 20-odd years. What are your opinions? Is it crazy of us to want to buy a house at this stage in our lives? Will I regret the decision of settling down at this age? I thought it was what I really wanted but everyone seems to shocked when they find out our plans... they make me feel much older than my years!

[volvic1]

I personally would think it was too young, me being the same age as you but that's my feelings, I had a long term relationship when I was much younger where all I wanted to do was settle down and get a house!! But that relationship crashed and burned so im alot more cautious now! In my current relationship, we both do want to build, have even designed one (I do it for a living) but that's our dream for say 5 years time, maybe more! Travelling and living in a different culture is whats important for us now! I think you have all your lives to scrimp and save! enjoy it while you have very limited responsibility's!! Saying that everyone is different, so if that's what makes you happy go for it! Just ensure it doesn't end up with either of you having a mid life crisis in ten years

[katycloud]

Yeah, that's fair enough I have traveled and lived in a different culture (even if it was in a country just accross the Tasman, it was a very different culture for me having never seen snow....) and traveled for a year accross Australia (huge country) and NZ (but that is all...)

 

The problems I have with traveling at this point in my life are:

- If I travel, I miss out on pay for that period of time (unless I WORK in that country, which given my profession I don't want to do)

- It's very hard for me to find time to travel given my job

- If we travel, we will have to postpone our house-buying goal by about 7-8 years given how long it takes to save for a deposit/missing out on regular pay/etc etc

 

Don't get me wrong, traveling is something I would love to do. My parents didn't travel until their kids were old enough to look after themselves, so they traveled the world at ages 45-50 and loved it. But things are different now and I don't want to regret my decision. Plus house prices in Melbourne are expected to start going back up again in about 2 years time (they're at a low atm).

 

So I thought I knew exactly what I wanted, but everyone saying stuff like "travel, do everything before you buy a house! Live your life! Don't settle down so young!" makes me feel like I'm making the wrong decision. What do you think? I thought that buying a house and settling down is an adventure in itself! Plus I've had plenty of traveling adventures... just not to the 'main' travel destinations of the word...

[volvic1]

Yeah I totally understand where your coming from, That is travelling to me! Considering Australia is where were moving too Your points for not going are totally valid, im lucky in the sense that the line of work im in has lots of work over there, with much greater pay plus gaining much more experience, which will help me when I do return home to settle down.

 

Im similar to you in the sense that to me building a house and moving in together would be exciting for me! But I know for a FACT that I would regret seriously not moving and not travelling. Everyone does say that the new thing is to travel after your family is reared, but to me I think I would prefer it much more when I was younger, plus whats to say you cant do it again when your family are reared!! Life is for living

 

Does Thailand, Vietnam, Fiji..etc.. these areas interest you? Considering your location visiting these places for a couple weeks wouldn't set your house goal back too much! Or the other hand would be would you consider sub-letting your house? I don't know if that's possible in Oz but I know alot of people who have built houses and wanted to travel so sub-let while they were gone?

[katycloud]

Yeah, exactly Another thing is that in Australia we both get paid really well... if we lived in Europe or the US we wouldn't get paid nearly as much as here! Asia is really close to Australia and holidays there are really cheap for us - but I would never want to live there for an extended period of time. While we are saving/paying off our home loan in the next couple of years we might be able to save for a short trip to somewhere in Asia - so you're exactly right.

 

I guess if I had never had the experience of living in a different country and traveling/backpacking my thoughts may be different... but all of my time spend traveling around Australia and New Zealand has kind-of satisfied my travel hunger (for now). Asia is very close and I will still be able to afford trips there, even with buying a house. But I guess Europe/America/everywhere else will have to wait...

 

It sounds like moving to Australia is going to be exciting for you! And extremely beneficial in the long run! If we moved anywhere overseas I think it would just take us backwards a few steps... we'd be paid less and it would halt our progression!

 

Thanks so much for all of your thoughts/advice... much appreciated.

 

If anyone else has any opinions on the whole travel vs. buying house thing feel free to chime in!

[Generation]

I'm Leaning more towards Buy a house. Fixed interest rates are very low right. I'm around that age and that's what I might do. The reason I say might is because $30k is not that much to put a down payment, in my opinion. 70-90k would do it for me ideally, also depends location and price. But you can do the math yourself, and see whether it would be worth it for you. I'd still be inclined to buying a house.

 

Traveling can wait. I think it's overrated too. House is essential.

 

So on a scale of 1-10, 1=traveling, 10=buying a house, I'm at a 9.5

 

 

edit; didn't know you were from Australia, so scratch what I said about low interest rates... I don't know. Here in North America, in some places, that's what it's like. Here in North America, imo, 30k down payment is okay for a house, but 70k+ preferable, but also it might be worth it to get it now due to the low prices. I say, buy it.

[In the Dark]

How about buy a house, get someone to rent while you are on holiday?

 

Of course that may need more saving that the current goal amount whatever that maybe if you want to have a decent holiday somewhere.

[Batya33]

What is the plan you have with your boyfriend as far as the house if you break up? At least in the U.S. I would think it's very risky to buy a house with someone you're in a relationship with but not married to, especially since you're putting in your life savings it sounds like.

 

As far as travel v. buying a house it's an individual thing -if you feel you've done enough traveling then it's the right time!

[Talus]

If it's what you want to do, then what other's think doesn't matter and shouldn't get you doubting yourself.

 

 

No one's lived your life, has your experiences or feels the way you do. They can offer advice and opinions based on their own lives and experiences. I could do the same. But it's really just food for thought. Your gut knows what you want to do so listen to it.

 

 

Travel and all that stuff is super important to me as opposed to money or settling down. I'm actually moving from here(Australia) over to Canada on Saturday indefinitely. I'm completely lost in my life and have no direction or goals. I just want to have fun and make a lot of friends, hopefully meet a special lady. So I'm gonna go snowboard for a few years and hopefully figure it out. But having said that, it's based off my experiences, opinions and where I am in life so it really shouldn't affect how you think. You sound like you're legitimately happy. Roll with it

[Moneypenny]

If it's what you want to do, then what other's think doesn't matter and shouldn't get you doubting yourself.

 

 

No one's lived your life, has your experiences or feels the way you do. They can offer advice and opinions based on their own lives and experiences. I could do the same. But it's really just food for thought. Your gut knows what you want to do so listen to it.

 

Spot on comment from Talus. If you and your partner are 'home-birds' then do the house thing, and enjoy it, regardless of what people say. People are different and they come to things either early, or later on in life. There is no right or wrong way to do things. It is however, about what you want.

 

For me, it was all about my youth and living it to the full and using my freedom to do so. I don't regret it for one moment. Being much older now, I do sort of regret not getting on the housing market sooner. I would be in a much bigger property and quids in if I'd chosen to do what you are doing at your age..which by the way, is very young in my eyes. But that's just me.

 

Alot of my friends took the 'early on' option of settling down with a house, kids, cats, dogs, chickens, and all the financial responsibility while I was out having 'fun' and being 'frivolous'. If you asked me if I would change the way I lived - I would say NO. BUT that is only because it is in my nature to be that way.

 

Be true to yourself - you don't have to justify your beliefs/attitudes to anyone.

[katycloud]

Thanks for the advice so far everyone.

 

 

 

Here in Australia $30,000 is enough to get a manageable home loan, but we are planning on saving for another 1.5 years so we'll have about 80k when we actually plan to buy Interest rates are OK in Aus at the moment, but house prices are at almost an all-time low so I want to get in on it!

 

 

 

If we were married, buying the house would still be risky in case we divorced - it's the same thing. We've been together for 5 years which is much longer than many newly-wedded couples, I don't see us breaking up BUT if we do - we will just have to sell and split. Because both of our names will be on the contract just as a married couple's would. Plus... who knows. We don't plan on buying for at least 12 months... an engagement may or may not occur before then!

 

 

 

Thank you for the lovely advice I somehow already feel like I've been young and frivolous, I've had lots of traveling adventures and experiences... so I think I'm making the right choice. Thanks!

[Batya33]

No, I think it's far riskier to buy a house with someone you are not married to. But you need to check into the laws where you live -maybe it's the same. I don't think 5 years is that long when you consider that you were barely adults when you started.

[journeynow]

You can still travel if you own a house. I've known people who've done a house swap, which gave them a free (and lovely) place to stay in the country they traveled to. Consider buying small and simple (and not your dream house to start with) or a house with small apartment attached, or a duplex, so you can rent out part to help pay off your mortgage.

[Marcy2011]

Decide whether or not (in a quiet moment BY YOURSELF) if there is somewhere else you'd like to visit before the big "purchase" or if all of this anxiety is from other people planting ideas in your head.

There are advantages/disadvantages to both - which can you live with? Buying a house means traveling (Europe, etc) will not be a priority for a while - are you ok with that? Does your travel have to be very expensive and long term? Can it be less expensive and short term? There are many ways this can go, but at the end of the day it boils down to the fact that 1. you're not married (so you're contractually obligated to put it off) 2. have your and your "boyfriend" agreed on any of this. If you were married, I could see the dilemma. Kudos for prepping for a very big purchase (and WOW, that IS pretty cool and responsible), but if you can do that, then sneaking off to travel somewhere cool w/o breaking the bank shouldn't be a big deal for either of you.

[katycloud]

No, I think it's far riskier to buy a house with someone you are not married to. But you need to check into the laws where you live -maybe it's the same. I don't think 5 years is that long when you consider that you were barely adults when you started.

 

Why do you believe it is riskier? Purely because of red tape? The laws where I live are exactly the same for de-facto relationships and married couples. So that wouldn't make a difference. We definitely plan on getting married and if we could be married right now we would be (but we'd rather save money towards a house than a wedding). We plan on getting engaged before we purchase the house. I know we were only 19 when we started 'dating' and so 5 years is not THAT long in that regard, but when we plan on buying the house we will be 25 and have been together for 6 years, and also I honestly don't see us breaking up - we have discussed marriage/kids/etc to a huge extent and both want the same things. Like I said we plan to get engaged before we buy. We have also traveled together/lived together and everything just feels right. Breaking up is NOT something I am hugely worried about because of all of these things - like I said we plan to get engaged before buying the house. And then if our relationship DOES fail (which I am very certain it won't) the laws protect de-facto couples just the same.

 

Decide whether or not (in a quiet moment BY YOURSELF) if there is somewhere else you'd like to visit before the big "purchase" or if all of this anxiety is from other people planting ideas in your head.

There are advantages/disadvantages to both - which can you live with? Buying a house means traveling (Europe, etc) will not be a priority for a while - are you ok with that? Does your travel have to be very expensive and long term? Can it be less expensive and short term? There are many ways this can go, but at the end of the day it boils down to the fact that 1. you're not married (so you're contractually obligated to put it off) 2. have your and your "boyfriend" agreed on any of this. If you were married, I could see the dilemma. Kudos for prepping for a very big purchase (and WOW, that IS pretty cool and responsible), but if you can do that, then sneaking off to travel somewhere cool w/o breaking the bank shouldn't be a big deal for either of you.

 

The only place I've ever really had a burning desire to visit was New Zealand, and I've been there three times, traveled extensively through the country and even lived there for a year. It was always the place I wanted to visit most in the world, and I did it, so I feel satisfied. Yes, it would be lovely to see Europe or America but I have no burning desire to travel anymore at this point in my life. Asia is so close to Australia that I could easily afford to save up for a short trip there if I ever wanted to while owning a house.

 

Thanks again for the input/advice guys!

[Batya33]

I'm glad you have those future plans - it's surprising that you think you have to save for a party for your wedding - I would think that if you're mature enough and committed enough to buy a house together and have been together for that long that you would be more focused on getting married than on waiting until you could afford a wedding reception (or get married but have the reception later). I did things in a different way too in my life and I have heard of people delaying marriage because they prioritize being able to have the wedding reception over taking the vows but it's a bit more unusual in your situation since you feel you are committed enough to buy a house together.

 

If the choice was travel or home ownership I would take a middle ground -get a nice starter house that you can afford where you can also afford to travel perhaps two weeks out of the year (I know that's not the same as traveling the world for months but could that work for you?)

 

I wasn't just referring to red tape - where I am from the moneys you mingle with him to buy the house would likely be treated very differently in the event of a break up as opposed to a divorce. I'm glad you feel so secure and happy in your relationship!