Buying a house–as you get older, it seems like it’s what you should do. Your friends are buying homes and settling down, your parents are encouraging you to buy, and you feel like you need to get on the property ladder.
However, buying a house is a huge decision, and a very personal one at that. Although there are great reasons to buy, there are also many reasons not to buy a house.
If you’re thinking about buying, always take the time to consider both the pros and cons. To learn more, keep reading to find five great reasons why buying a house may not be for you.
1. You’re Looking at Decades of Mortgage Payments- One of Many Reasons Not to Buy a House
Almost 80% of homebuyers in the US have a 30-year fixed mortgage. Are you ready to spend the next three decades making mortgage payments?
A house is a huge investment, both in purchase cost and in interest fees over time—not everyone feels comfortable being saddled with such a huge financial burden for decades to come.
2. Homes Are Often Sold for a Loss
A home is not always an investment—if the market downturns, you may need to sell your home at a loss.
This means not only will you be unable to make a profit, but you’ll lose money over time. Depending on your goals, you may want a more reliable investment.
Real estate markets can be very volatile, so there’s no guarantee that your home will increase in value, even over long periods.
3. Constant Upkeep Costs
When you buy a house, the maintenance costs never end. Replacement appliances, a new roof, leaky faucets, or new carpet—it seems like there is always an expensive project to be done.
Often, people choose to sell a house and rent instead, as it means less financial pressure and less upkeep.
4. What If You Lose Your Job?
How will you keep up with mortgage payments if you lose your job? With job security becoming increasingly uncertain, it’s harder than ever to know how long you’ll stay with one company.
Should you get laid off, you may find yourself wondering ‘how to sell my house fast’, a stressful situation for anyone to be in.
5. Renting Can Be Cheaper
Sometimes, it can actually be cheaper to rent than it is to buy. In extremely expensive cities, like New York or LA., first-time homebuyers are almost priced out of certain areas, since home prices can be so costly.
Why buy outside the city or miles away, when really you want to be downtown and near all the excitement? In these cases, it makes more sense to rent, as you can live the lifestyle you want, within your budget.
Don’t Buy a Home—Unless You’re Sure
Buying a home is a huge commitment, one that’s not for everyone. If any of these reasons not to buy a house resonate with you, you may not be ready to become a homeowner.
If so, that’s ok! Why not enjoy the freedom of renting, traveling, or even living at home and saving money. There’ll be plenty of time to buy in the future if you decide it’s the right thing for you.
Always think long and hard before making big purchases, such as a home—rash decisions are never a good idea when it comes to your finances.
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