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Updated about 6 years ago on . Most recent reply

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Gustavo Rodriguez
  • Newark, NJ
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Use savings to pay off debt or buy a multi-family home??

Gustavo Rodriguez
  • Newark, NJ
Posted

Hello everyone,

For those that may have more experience than me, this might be an obvious question, but I have been wrestling with it for a while so here it goes. My wife an I have always talked about buying a home, but have always fallen short of saving for one. We are now in the process of saving for one again, but we have about $100,000 worth fo debt together that we have to pay between students loans and personal. We also rent an apt for $1,600 and I have two children. My question is the following: Would it be wiser to pay off our debt first before purchasing a home considering that a bank may not give us a loan due to our debt or should we attempt to use our savings to the buy a home? I would like to begin real estate on the right foot and be in it for the long haul and not just short term. Anyone with experience please chime in. Thank you

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Nathan Gesner
  • Real Estate Broker
  • Cody, WY
41,398
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Nathan Gesner
  • Real Estate Broker
  • Cody, WY
ModeratorReplied

Pay off the debt. You'll probably get the majority of users telling you to invest first and then pay off the loans later but that's a bad view of financial stability. You need a solid foundation before you start taking risks with investments.

When the feces strikes the rotating oscillator and you realize the wisdom of this advice, you can buy me a round.

  • Nathan Gesner
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