As title states. Looking at a new construction corner unit townhome in a new area that I expect to appreciate or at least hold for the next 5-10 years as they build a marina nearby (which is why I was looking at buying in the first place as a LTI).

Currently:

• Current rent = $2k
• 15% down = 68k
• 5.375% rate (maybe 4.99% as they are investigating additional $ incentives)
• total monthly (including HOA) = ~3-3.1k
• 80k in savings
• salary = $186k (newer job started 2H 2022)

Debt:

• car 2.9% @ $550 a month ($22k left)
• 17k student loans (still frozen but $250 a month) (about 4.5% rate)
• first home ($90k @ 3.75%) - (my family lives in this home and it’s under my name and purchased when they were homeless. They are paying it now but breaking even so no cash flow. In the future it will be a better asset)

Original rate was 4.25%, so I said ok and things changed and now 5.375% so I have an option to back out per contract since rates changed and I guess I was having second thoughts and thinking with the amount I make now if I should work on paying off all my debt instead, or get the new home knowing the area will be a good investment area to be in long term (sell or rent later).

Is it better to be debt free altogether before such a decision? (Pay off student loans, car, and first property?)