Another way to think about these issues is from lifecycle and human capital theory.
The human capital perspective holds that when you are young, your largest asset is your human capital, which can only be monetized slowly over years.
From that perspective, it makes little sense to take your financial capital (a relatively small part of your overall balance sheet, human capital included) and invest it in a large, illiquid, undiversified asset class such as a principal residence.
Instead, you should wait until you have a significant downpayment, so that you aren't overallocated to real estate and human capital from a holistic balance sheet point of view.
Just food for thought. (And if real estate "always goes up," you can capture that growth by investing in REITs.)
The human capital perspective holds that when you are young, your largest asset is your human capital, which can only be monetized slowly over years.
From that perspective, it makes little sense to take your financial capital (a relatively small part of your overall balance sheet, human capital included) and invest it in a large, illiquid, undiversified asset class such as a principal residence.
Instead, you should wait until you have a significant downpayment, so that you aren't overallocated to real estate and human capital from a holistic balance sheet point of view.
Just food for thought. (And if real estate "always goes up," you can capture that growth by investing in REITs.)
