Buying a house on a PhD scholarship

I recently became one of those struggling 'first home buyers' that you hear about during the financial news.

Along with brushing my own hair, then going to the 'big' school, then learning algebra, then starting a PhD,... this is something that I thought far distant in the future and completely unobtainable by little me.

So, I've bought my first house way earlier than I ever expected. This time last 6 months ago, I barely understood what a mortgage was, let alone was paying one off from my meagre PhD scholarship.

Obviously I didn't do this alone. Whilst my partner in housing crime can potentially earn far more $$ than I can ever dream, at least I have the self satisfaction of knowing my contribution to the house deposit and mortgage is as equal to his. At least at this point in time, whilst he also struggles to finish his doctorate. Anyway, two PhD scholarships are better than one.

From someone who's never had an overdraft, it's a bit disconcerting to look at your bank account and see -$x00,000 glaring at you, with it's nasty little red bolded font. For someone who has previously spent little on everyday life in favour of randomly heading overseas every year, this is a big commitment. "Want to go to the Galapagos Islands?" says my travel buddy. I feel overwhelmed with a sense of forced 'adultness' that I have never previously experienced. Computer says no. :-(

But during this teething phase, whilst I'm getting used to the constant outward flow of funds from my bank account, and the knowledge that we can't just 'call the landlord' when the shower starts leaking, I'm obviously thrilled with this turn my life has taken.

However, I'm fearful of mentioning my big news to others, as I'm often met with the same response: "You guys are settling down! Are you going to start a family soon?"

As far as I can see, there seems to be several advantages for buying a house during your PhD (none of which include having a baby as that would surely not reap any financial gain or stress relief). For anyone who can manage to pull together a sufficient house deposit, then these are some reasons that you should do it:

1. As an investment. You're obviously not earning enough to save during your PhD, you're probably not earning any superannuation/pension, so consider these 4 years of study as wasted time in the progression towards financial stability. Buying a house means that you're actually investing in something.

2. You have to start early in the house buying game. The earlier you start, the easier it will be later on. What first home buyer can afford to live in a flash suburb? If you wait too long, it's going to be so much more difficult to live in the grottier suburbs where you can afford to buy.

3. Because a PhD scholarship is tax free (well it is here in New Zealand) you earn more than you think. You also appear at least semi-intelligent and responsible. This makes it easier to get pre-approval for a home loan from the bank.

4. You're used to budgeting and possibly living a bit 'rough' if necessary.

5. You want things to be easier later on. If you finish your PhD hating life, then you can sell up and travel the world if you really want to.

6. Perhaps most importantly, it's fun! When your PhD isn't progressing as you'd like, you can think about home decor, gardening, or pet chickens to take your mind off it.

Perhaps I'm in a fortunate position. But I'm not well-off by any means and I didn't realise until now that this was possible.

Here's a good website to get you sorted.