For many Americans, purchasing your first home is one of the biggest steps toward success.
You finally have a space that’s completely yours, you don’t have to deal with noisy neighbors or the people above you who insist on throwing parties during the week, or deal with a not-so-great landlord. Whatever your reason for wanting to move on from apartment living, buying your first house can feel like an epic accomplishment.
Unfortunately, many homeowners venture into their first home with rose-colored glasses and fail to realize some of the ways in which home owning isn’t all it’s cracked up to be. While there are many advantages to having your own property, the same can be said for renting as well.
Buying a house isn’t necessarily the best step for everyone. If you’re teetering between your decision of whether or not to take the plunge, take a look at these reasons you might now want to buy a house.
1. Your Credit’s Less than Stellar
If you don’t have a particularly great credit score, you can still buy a house, it just probably isn’t the smartest financial plan. Lenders and banks will still likely allow you to borrow from them, but what you’ll pay in fees and interest rates will be exuberantly high.
Furthermore, it’ll also equate to a higher mortgage payment as well. If this is the case for you, you may want to sit down and seriously consider whether or not it’s the right move for you.
2. You Tend to Move Around
When you rent a place, it can be easy to develop the habit of constantly changing location. Maybe you change places because you like to try new parts of your town, or maybe your job location changes, or maybe you have kids that need better schools. There are many reasons people choose to switch apartments on the regular. However, once you have a home, that option is no longer feasible.
When you decide to purchase a home, it’s usually best to plan on staying there for at least five years. Moving is not only more of a hassle, but trying to sell your home can sometimes be an extremely slow-moving process. That being said, if you’re someone who loves to keep their options open, you might want to just keep renting.
3. The Market’s Declining
Many people’s drive to buy a home is to build equity, while that’s a valid and good financial move, it’s important to consider the market before doing so. The housing market, like many things, goes through periods where it’s on the rise and periods when it declines. Unfortunately, if the market keeps falling, so will your equity within your home. So, if that is one of your driving factors for buying a house, be wary and alert to what the markets doing so you don’t end up in a disappointing situation.
4. You Travel A Lot
Depending upon your profession, you may find it within your job description to travel on a regular basis. If that’s the case for you, you might find that you’re rarely at home. Between travel schedules, your times at home may be few and far between and that’s before airline delays and cancellations. This of course begs the question, if you’re never home, why buy a house? When the road is your home, it’s rarely worth the investment your money and paying for the upkeep of an expensive property.Buying a house isn't always the best decision for you or your finances. Click To Tweet
5. You’ll Be Responsible for All Repairs
The beauty of apartment living is that you’re not responsible for certain maintenance and repairs. Everything in your home has a lifespan, whether that’s your washer, air conditioner, stove, pipes, or even your roof. If you own a home, that’s all money out of your pocket as you’re the sole person responsible to fix it.
In an apartment, however, all of those fixes are out of your hands and your wallet. Maintaining your home is another major expense you’ll want to consider before purchasing your first home. Decide whether or not you’re ready to handle life’s unexpected situations.
6. You Won’t Take on New Debt
As I’m sure you know, a home is a major investment, and obviously, one that won’t come cheap. If you already have debt, adding a mortgage to your monthly payments is only going to build on top of that. But if you don’t have debt, why give up the freedom of being debt-free?
Many Americans feel the weight of their mortgage payment each month; thankfully, it’s not a necessity. Take the time to thoughtfully decide whether or not that’s an expense you’re ready or want to take on. If other areas of your life, like travel or education, are more important to you, then you may be better off spending on those instead.
7. You Can Invest in Other Things
Contrary to popular belief, a home isn’t always the best investment you can make. After all, selling your home can be a slow and difficult process that can often times cost you money, which means you might not get out of it what you put in.
Moreover, sometimes, even if your home’s value rises, it still might not be enough to offset the costs you’ve invested into your home throughout the years.
If investing is your only goal, purchasing a home isn’t necessarily the answer. Instead look into other, possibly more lucrative options available to you. The stock market may not be the most sure thing either, but it does offer the option of tax deductions when it comes to losses.
Purchasing your first home can be a wonderful and rewarding experience. For some, it is the obvious next step, as a home might be just what they need to meet their new life situation. That being said, you don’t have to buy a home and for some, it’s not the right path. Before you decide to buy a house, carefully consider your motivation to become a homeowner and whether or not it’s financially right for you.
Did you purchase a home as soon as you could? What are some other reason not to buy a house?