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I will be starting fellowship in 7/2018 in a relatively expensive area of the country in the midatlantic. The fellowship is expected to run 3-4 years and is research intensive. There is a possibility, depending on how things go, that I would potentially be able to/ stay at this institution after fellowship. I really hope to buy a house but I'm not sure whether this is wise or affordable. I hate the thought of sinking income into rent which doesn't build equity but my instincts are telling me that I just may not have the income to afford a home and wanted to get some input from more experienced people.
My circumstances are as follows. I am single and the anticipated income of the future fellowship is ~$4.1K net/month in the first year. I have no medical school debt and my college debt is <20K and low interest. I have no credit card debt and my car is paid off. I have no property except for my car. I have $3K in a Roth IRA and no other investments. My credit history is excellent. I can't count on definite assistance from family but my parents may be able to chip in some "gift money" (?~10K) to help with closing costs if that were to become necessary. The desirable houses I am seeing on the market in the area I'll be working in are all in the 400-500K range. To be clear, these are not mansions. Assuming a doctor's loan mortgage with 0% down, I've been looking at some houses on the market and the expected monthly payment for the mortgage + insurance + tax (no PMI) would be ~$2600-2700. Clearly, this payment would be ~2/3 of my net monthly income and I'm not sure a bank would even offer it? Rent for an apartment or small house looks like it would be ~$1900. That said, I am very frugal and have paid off $40K+ of various debts (credit cards, car loan, student loans) in the past 3.5 years of residency on resident pay with some additional income from moonlighting.
My circumstances are as follows. I am single and the anticipated income of the future fellowship is ~$4.1K net/month in the first year. I have no medical school debt and my college debt is <20K and low interest. I have no credit card debt and my car is paid off. I have no property except for my car. I have $3K in a Roth IRA and no other investments. My credit history is excellent. I can't count on definite assistance from family but my parents may be able to chip in some "gift money" (?~10K) to help with closing costs if that were to become necessary. The desirable houses I am seeing on the market in the area I'll be working in are all in the 400-500K range. To be clear, these are not mansions. Assuming a doctor's loan mortgage with 0% down, I've been looking at some houses on the market and the expected monthly payment for the mortgage + insurance + tax (no PMI) would be ~$2600-2700. Clearly, this payment would be ~2/3 of my net monthly income and I'm not sure a bank would even offer it? Rent for an apartment or small house looks like it would be ~$1900. That said, I am very frugal and have paid off $40K+ of various debts (credit cards, car loan, student loans) in the past 3.5 years of residency on resident pay with some additional income from moonlighting.
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