Invest or buy a house/apt. ASAP? : eupersonalfinance


I’m 20 years old, starting my first full-time job soon and I’ve made the decision to stay at my parent’s house a bit longer. Maybe for the next 2 to 6 months depending on how this crisis and my job goes.

My starting salary is about 1800€ net, with many advantages such as a company car. This means that I don’t pay fuel/car/insurance, and I don’t pay about half of my groceries (meal checks). As I’ll be living nearly rent-free, I should be able to save up to 1500-1600€ every month. Also, as I work in software engineering, I can safely expect that my salary will go up by a lot within 2 years if I stay at the same company.

I am debt free and got nearly 30k saved, 25k of which are what I’d consider my “life savings” that I refuse to use for anything other than a downpayment on an apartment or a house.

However I don’t know what the best move would be financially. I see two options:

  • Become an owner as soon as possible. I can probably get 40k for a downpayment within 6 to 8 months, so I may be able to get myself a nice one or two bedroom apt/house (something around 180k€) next year. Maybe. (?)
  • Invest as much as possible (of my savings, and also invest monthly)
    • Ideally I would want something with very low risk and 4 to 8% of compounding interest. Does that exist? I don’t know anything about investing so someone would have to tell me where to start. Can banks do this for me? Or would I need to manage my portfolio myself?
    • This option would mean that I would likely need to rent when I move out of my parent’s house, unless I invest short-term (<2years)

Which option would be the best for me?

Note that I don’t really aspire to become crazy-rich some day, but I do want to manage my wealth good enough to be in a position to retire, or go part-time, relatively early in life (in my 30s), so I can enjoy life, travel and treat myself. For instance, my dream is to have a Tesla or similar car, and I would love to be in a good enough position financially to buy one someday. (but maybe that’ll never happen as cars depreciate really quickly and expensive ones are never a good investment AFAIK).

To achieve my goals, it seems logical to me that I should become an owner as soon as possible. Am I wrong? Should I invest instead?

One last thing: if I were to buy a one bedroom newly-built apartment near Brussels (I should be able to get that for 180k€ I think), would it be a good investement? Also, if I have extra money (that doesn’t need to go towards an emergency fund OFC) every month, should I save/invest, or overpay my mortgage to get rid of it ASAP?

I’m open to any kind of advice you may have for me! I think that my 20s are probably the most important part of my life financially, and I strongly believe that if I make good decisions now it could set me up for life.


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