On homes

We think of buying a home as the gold standard. People my age feel inordinate amounts of pressure to own homes, and at the same time, they feel fear that they may never be able to afford one. 

Societally, we’ve put a lot of pressure on buying a home. When I was renting, I heard a lot of comments like, “a mortgage would be the same as your rent” and “you’re wasting money renting.” While this might be true on its face, home ownership comes with a lot of other expenses renting does not. Home ownership can mean expensive repairs and projects, and the constant feeling of needing to take care of the home or needing to be doing something for it. Renting, on the other hand, leaves that burden entirely to the landlord. And, not to dismiss the perks of home ownership – the space is entirely yours and the home builds equity as you own it. But, renting can serve as a stepping stone, allowing you to focus on other financial or life goals until you’re ready to buy home. Having the landlord on the hook for maintenance and repairs is a valuable consideration.

According to a 2020 Coldwell Banker Survey, 26% of homeowner respondents indicated they struggled to buy their first home because of paying down or off debt. If you’re someone who feels behind the eight ball on buying a home, consider this idea: What if, for the next several years, you paid off all your debt (student loans, credit cards, cars, etc.), created a realistic budget, and saved as much as you could for a house. When you were ready to buy, instead of getting a 30-year mortgage, you instead got a 15-year mortgage. You could finish paying off your house at the same time, or sooner, than someone who took out a 30-year mortgage years before you, and likely, you would be in a better place financially. 

We don’t need to rush things, or make choices that we’re not ready for, just because someone said it was wise financially. Consider your own lifestyle, your wants, your needs, and your situation. If you’re not ready, that’s okay. Focus on what you need to be ready and take it one step at a time. Waiting to buy a house only means you can make a better decision – one you’re prepared for financially and emotionally.