Double the people, double the fun. I’ll admit upfront that this process isn’t going to be fun. For a couple to buy a home in a big city, it will take lots of hard work and dedication.
But, as a couple, you have a few things going in your favor, mainly twice as many people to grind towards the down payment.
As a team, you will need to be intentional about what kind of home you are looking to purchase. Do you want a starter home or a forever house?
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Starter home vs. family residence. Homes in big cities are extremely costly compared to their small city brethren. I cover some of the differences between small and big cities in the previous articles in this series (#1, #2, #3).
Unfortunately, big cities moved away from building starter homes. Even townhouses are enormous and expensive. So what is a young couple supposed to buy in a city?
Are condos an option? Should you buy a condo? I am not a massive fan of condos because of the homeowners association fees. HOA committees can raise them as they see fit.
If you are a young couple, money may be tight. The last thing you need is someone to have control of your monthly expenses via HOA fees. Let’s look at some other options.
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How about mobile homes? I currently live in San Diego. I looked for a small mobile home to purchase for me as an unaccompanied (wife is in Florida) person here.
The prices on mobile homes are great until you get to the lot rent. That’s right, I looked at places that cost $200,000 (reasonable), but the lot rent was $1,500/month.
Again, someone else would be in control of my monthly expenses. After reading “How to Invest in a Mobile Home Park,” I understand that the owner will raise rates yearly. No, thank you.
Should we commute? Driving into your work site may be an option. You can get a place in the suburbs or far away from the city center.
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While commuting sounds excellent, you lose all the appeal of living in a big city. If you are going to commute in for over an hour, you may as well move to Alabama or West Florida.
Double remote work. Where your partnership shines is with double remote work situations. You can both focus on getting remote jobs right out of college, trade school, or the military.
If you two move into a small apartment to save money and begin remote work positions, you can set yourselves up for early success.
Double the businesses. The magic of remote work is the ability for you to start your own online or home business. Because you won’t have admin time (commute, getting dressed, preparation, or wasted time), you can convert that energy into personal gain.
Blogging vs. YouTube #3
You can start a creative business where you write a blog post daily or produce a podcast every week. You need something that leverages the power of compounding while you work remotely.
If you don’t want to start a business, you can join the gig economy as a freelancer or a consultant. How about being a fitness coach during your downtime?
Saving big money. You will be in the grind of your life. I read that the average home in San Diego is $910,000. The article said you must make at least $160,000 to afford these homes.
On top of the expensive housing, living expenses in a big city are outrageous. I am paying New York City prices here in San Diego.
America is Expensive
To summarize, to live in a big city and be able to save is an unworldly feat. You will need to be on top of your savings game from the start.
If you fall into the trap of buying expensive cars (over $25,000), you may as well prepare to rent for the next 20 years.
When you add student loan debt to this conversation, living in a big city and not accumulating monthly debt will be challenging.
What are you willing to do to get home? As a couple, you need to have tough conversations. What are you ready to sacrifice to get ahead financially?
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Are you willing to rent a studio apartment in a safe but “older” neighborhood? Are you willing to buy a 2016 Ford Focus over a 2022 Jeep Grand Cherokee?
I drive around San Diego shaking my head because everyone is in a Tesla or BMW. You can’t get rich by acting rich.
To save for a down payment, you will need to endure a season of sacrifice. It is possible to save $200,000 in a couple of years with prudent savings.
Learn the various savings vehicles to ensure you earn a decent yield. These instruments include high-yield savings accounts, CDs, series “I” bonds, and treasuries.
An alternative method. Consider moving to a small city to save for your down payment. If you move to Alabama with your remote job, you can make a nice living.
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If you bring in the same hustle & saving mindset, you can save $200,000 in a year or two. Even better, you can buy a home in Alabama that you can rent when you return to your bug city.
My wife and I own three homes and have saved $250,000 over the last three years. We live in west Florida. We could move to San Diego and purchase a home if we wanted.
Not only do we have the down payment, but we also have additional cash flow from the rental properties. Sometimes the best way to buy in a big city is to leave said big city.
Conclusion. If you fall into the big city trap of expensive cars, lovely rental homes, and commuting, you may as well consider yourself a lifetime renter.
The Sharing Economy vs. Inflation
To buy in a big city will require discipline that most people on this Earth do not have. However, as a couple, you have one good thing going for you—each other.
If you two can get on the same page, live below your means, and work harder than you can imagine, you can absolutely save for a down payment.
There is no reason a big city couple cannot save over $300,000 in three years or less. You have the education, skill set, and mentality to do it—avoid the social media trap of instant gratification.
Can you be one of the 5% of couples that figures out the game of life? Looking around San Diego, most people want to try to spend their way to happiness.
However, happiness comes from building a plan and achieving your objective together. If you want to save for and buy a home, you can do it with the right mindset. Good Luck!
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