Buy a car or house first?

[Michael Guzik]

Hey guys I'm 19 years old and work for a Real estate property management company in San Antonio. I make 25k a year and have a credit score of 720-725 depending on what score is used.  I need to get a new car because my old one is nickle and diming me and the repairs cost more than the value of the car. I bought this car used for cash a while back so I wasn't making monthly payments on it and didn't have a car loan. I would like to take over the payments for the vehicle that my Dad drives (he has 9k still owed on it and it is worth about 14k) and put it in my name to build my credit. I would like to build my credit as much as possible since I am also looking to purchase a property this summer or fall 2018 and house hack. I've heard two different sides to the issue of buying a car or house first. Some say that the car should wait because then I won't be able to get a decent house because I will have more debt. Others say that the debt and consistent payments will show mortgage lenders I am responsible and can pay important payments every month with no issue. I know I'm young and don't make much so I don't have a lot going for me and I realize this but I would like to get started in real estate ASAP. With this in mind I am trying to be very careful and not do things that will hinder me being able to get my first property and house hack and begin my real estate journey to freedom. What do you guys/gals think and why? Any and all comments or opinions are appreciated thank you!

[Thomas S.]

At this stage in your life do not buy a car, or any large item, that you can not pay cash for. You only use credit when you can pay it off as soon as the bills come in. Clear all bad debt first and begin to save diligently to invest.

You need to get established, improve your income, possibly with a second job, learn to live frugally, save every penny possible for the future, put aside your ASAP investing plans and begin to associate with the right people.

What you are working toward is a life plan not a today plan, life is not a race. You must plan and save till the time is right based on your financial readiness. All too many beginners want to rush into what is a long slow race to the finish and will burn themselves out before they even begin.