u/Free-Space9769

I have a third-party trust account for funds from a medical malpractice settlement. The money was set up to be paid out as scheduled annuity payments starting when I turned 18. I currently have about $80K in the trust, having used a good portion of what I got so far on college, a car, and maxing Roth IRA contributions every year. Recently, I got another lump sum payment of $245K, so total in the account now is around $325K. I will also be getting three more installments of the same amount at age 30, 35, and 40.

My parents are encouraging me to use some or all of the money to buy a house or condo. I currently live at home, and they’re very opposed to me having to pay rent. I have to say that I mostly agree (aside from the fact that renting eliminates some risk) and know real estate is generally a good long term investment. But I’m hesitant at this point in time due to the housing market still seeming to be high, as well as the fact that I’m unsure if I’ll be in the area long enough to see the ROI due to job uncertainty. I’ve read that the general rule for the latter is minimum of five years ownership, but not sure if a larger down payment (or, if possible, complete cash payment) changes that advice any. Although I’m also worried about expenses of owning a home as well, as I only make around $40,000 net (if that) per year.

Other than that and continuing to fund the Roth contributions, I’m very undecided/lost on what to possibly do with the approximately $325K I currently have in my trust, as well as plans the subsequent payments. Some ideas I had were opening up a regular IRA and sticking a lump sum in an index fund like I do with my Roth, or possibly a CD. I’m also curious if a financial advisor would be worth it in my situation considering the amount I’ll be getting over time, or maybe not so much at this early stage in my life.

Any advice is greatly appreciated!

I am a single 25 year old looking at potentially purchasing a home or property of some kind within the next year. This would be for my own personal use at this time. I have a little over $300K in a trust account that I would like to at least use part of to pay for the house. I currently live and work in the PA/MD/DE tri-state area, so ideally would like to stay or not stray too far for commuting purposes. I’ve only been looking very passively, but am generally seeing that anything 2-3 bedroom that’s not a complete overhaul is $300K minimum. I’m not at all surprised by this, and have concluded that I’ll most likely have to take out a mortgage in some amount.

My primary concerns are:

-What type of property to buy. I’ve read that SFDs generally appreciate more than condos or townhomes. However, having only lived in a rental townhouse in college, I’m very nervous about taking on all of the upkeep and maintenance involved with even a small home on a small plot of land. Additionally, in the areas I’ve been looking, it seems that you can get a much nicer townhome for the same or less than a SFD. Obviously those come with HOA fees, but that would also eliminate some of the maintenance I’d be responsible for with a SFD.

-How much of a down payment to make. Given my fortunate financial situation, would it be worthwhile to make a significant down payment of like 50% or even pay completely in cash? I ideally want to keep some of the money as an emergency fund, though I will also be getting more as an annuity payment when I turn 30.

-Whether my current income can sustain the costs home ownership. While I’m extremely fortunate to be able to actually afford the initial cost of home ownership, I obviously don’t have an unlimited supply of extras funds to sustain the long-term costs. So, at that point I’d be reliant on my income, which to be honest I’m very nervous about. Currently, I make $1,170 in net take home pay biweekly. I will be getting a raise in a few months, and have calculated that my bi weekly take home pay will be $1,343 from that point forward. Even if I were to completely scale back all unnecessary expenses, is this genuinely enough to sustain home ownership?

I know a lot of what I’m asking is highly dependent on the area I choose to live in, but any general advice is very much appreciated!