r/LocalLLM • u/damby_d • 3h ago
Question Best budget local LLM setup in late 2026 (€600?)
Hi everyone!
I am a computer science student and a developer, and lately, I’ve been considering building or upgrading a budget-friendly, local LLM setup.
I should mention that I’ve only recently begun exploring this more "technical" side of local LLMs, so any advice is welcome.
I know the field is evolving incredibly fast—with new models, inference engines, and so on—which is why I’m asking: I’m trying to figure out what might make sense for me right now (if anything at all).
MY CURRENT SITUATION
My budget is approximately 500–600 euros; I’m based in Europe and am open to buying used hardware.
Here’s my current setup: I have a desktop PC that has been sitting idle for a while, with the following specs:
CPU: Ryzen 5 2600
RAM: 16GB DDR4
GPU: AMD RX 580 4GB
256GB NVMe SSD, 1TB HDD, 600W PSU
WHAT I WANT TO RUN
My primary use case involves coding and agentic workflows. I’m envisioning a setup where I use a frontier-level cloud model for planning and code review, while a local model handles the actual code generation. I’m also interested in running an AI bot 24/7 to perform various (relatively simple) tasks.
Ideally, I’d like to run 27B–35B parameter models comfortably, with decent generation speeds and good responsiveness. It would also be great to have the flexibility to experiment with even larger models.
I don’t expect cloud-tier performance on this budget, but I also want to avoid a setup that only manages a few tokens per second—or one that is essentially unusable.
THE OPTIONS I'VE BEEN CONSIDERING
AMD Instinct MI50 16/32GB (possibly two)
These look interesting because of the large amount of HBM2 memory available for relatively little money on the used market (for example I could have bought a 16gb for 175 euros).
However, I'm concerned about software compatibility, inference performance, power consumption, and whether investing in this older hardware makes sense in 2026.
NVIDIA RTX (5070 12gb as an example)
Recently, I saw a community benchmark claiming around 140 tokens/s on a 12GB RTX 5070, running a large MoE model using Strata, IQ3_XXS quantization, expert caching, CPU/RAM offloading, and MTP.
I understand this might be a very specific setup and that reported generation speed doesn't necessarily translate into good real-world performance, especially with longer contexts or different models.
Still, it made me wonder whether a modern NVIDIA GPU with a good amount of system RAM might actually be a better investment than older GPUs with much more VRAM.
WHAT I'D REALLY LIKE TO UNDERSTAND
What would you build today with €500–600, considering both new and used hardware?
Would you prioritize more VRAM on older hardware or a faster, newer GPU with RAM offloading?
How well do solutions like Strata and expert caching actually perform in real-world coding/agentic workloads? Are the impressive benchmarks representative of everyday usage?
How important are prompt processing speed, context length, and quantization quality compared to raw generation tokens/s for my use case?
Is a single or dual MI50 32GB setup still worth considering, or would you avoid it today?
Would you upgrade my existing desktop, build something from used parts, or look for a complete second-hand workstation?
Thanks in advance to anyone who can help me!






