Many of you have been asking yourself.. should I rent or buy a home. For as long as I can remember the The American dream has always been to purchase a home. It just seems like a natural part of our life cycle. By purchasing a home it’s by far one of our biggest accomplishments. But is it?
I have mixed feelings. I never really asked myself should I rent or buy a home and right now I don’t think people should buy homes. Maybe it’s because I never paid cash for a house. But then again it could be because my house is underwater. Perhaps it’s because we don’t stay in our houses like people did 50 years ago. Whatever the reason being, I feel like buying a home can be one of the biggest mistakes we can make. Here’s why.
- We purchase homes today, because we don’t want to rent.
- We want to have something of our own, so we don’t have to deal with a landlord.
- We want to paint the walls and do other things to our house without having to get permission.
- We say renting is throwing away money, where buying is an investment.
- Their is something wonderful about saying I own this home.
We live in a society full of debt! We can go out and buy all things that we cannot afford and a house being one of them. Sure the bank says we can afford it, but when it comes down to it, their are a lot of other costs that aren’t factored in when we choose to purchase a home. A home is an investment when you own it. Not when the bank owns it. Some may argue I have equity etc, but you must factor in that someone will want to buy it. If no one buys it from you and you still owe the bank — then whose is it really?
So before you make one of the biggest mistakes of your life by buying a home, consider the following?
- How many years do you plan on staying in your home?
- Do you plan on living in your home and then selling it as an investment? If yes, consider the following: How much you would pay in homeowners insurance, repairs then calculate the percentage of what you would pay your Realtor to sell it. Often times if you don’t stay in your home long enough, these costs will wipe out any investment.
- Is their a chance with your job, that you may have to relocate?
- Is their a chance that you may want to move in the future?
- How’s the area of the home you are purchasing? Can you see it turning 10-15 years from now?
Should I rent or buy a home?
Well if If you answered yes to any of these questions, you may want to consider renting.
When I bought my home I knew from the start we weren’t going to live in our house forever. The first home we purchased was a starter home. The second home we purchased was supposed to be an investment home for a temporary period of time… It’s not a temporary home now because we are upside down with it. Having this debt is a huge burden, where often times I feel like if we were renting we could move and have the flexibility to lower our housing cost, job opportunities, etc.
Now don’t get me wrong, I don’t think buying a home is a mistake. I just feel that people need to really think about their purchase. Don’t get caught up into the standard life-cycle, like I did. I simply didn’t buy mine for the right reasons.
If you are considering home ownership, be sure to ask yourself those long term questions. You’ll find It’s better to rent, than to jump in and buy a house for all the wrong reasons.
What’s your thoughts on Should I Rent or Buy a Home?
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We rented until it was cheaper to buy than it was to rent. We rented a 2 bedroom apartment with 3 kids while all our friends were taking out piggy back mortgages to afford homes that were way over priced. We were by no means experts, we just knew that we didn’t want to pay $300K for a 1200 sq ft home nor could we afford it. So we waited and saved and sure enough we were able purchase a town home for under $100K. I love owning my home! But I would go back to renting if I thought it was a better option for us. I really think it depends on the situation but I do agree that for a long time society looked down on renting. I think that tide has changed!
I totally agree! I would rent if it was a better option for us too! We were a Military family and as much as I hated moving when I was younger I am so thankful for the opportunity to travel the world. I would love to have that option for my kids.
I love this article. It really makes one think before they jump. My Husband and I purchased our home because my parents sold it to us for less than half of its value. So we really got a good deal. If I were looking to purchase a home now, I would definitely consider all the options you posted.
Thanks Paula! I’m glad you enjoyed the article. My parents were actually our biggest influencers when we purchased our home. Our family grew out of space very quickly when our twins were born and I think my parents wanted to see us living comfortably in a bigger house. The house was comfortable, but the payment wasn’t. Looking back it was one of those times I should have gone with my gut feeling.