What should you do when it comes to buying vs renting a home?
I wanted to share a quick 100 words on the home ownership decision…
You don’t have to rush. Just because you found your dream job, paid off your debt, or started saving some serious money for the first time ever it doesn’t mean that you have to buy a home. Buying property is not the next logical step in your 20s. Just because some “expert” on the news tells you that it’s the best time to buy a home it doesn’t mean that it applies to your unique situation.
We all have unique lives. You may want to start a business, travel more, or splurge money on yourself. How you spend your money is your decision. You don’t have to buy if you’re not ready yet.
I put together a guide a few months back on making the decision between renting or owning a home in your 20s.
Ever since this post on buying vs renting a home went live, I received a few great comments from Bret of Hope to Prosper. I’ve highlighted them below.
The best reasons to buy a house:
1. Have it paid off before you retire
2. Lock in future housing costs
3. Accumulate a valuable asset
4. Have a hedge against inflation
5. Have personal freedom (no landlord)
The best reasons to Not buy a house:
1. You intend to move within the next 5 years
2. Your job or income is unstable
3. You can’t comfortably afford it
Yes, I’m a devout homeowner and I could never go back to renting. Home ownership is the best case scenario for me. I bought a great house a couple of blocks from the beach and I bought it cheap in the ’90s. We love where we live, have great neighbors and want to retire here. I kept the original loan, the house will be paid off in about five years and it’s worth three times what I paid for it.
The personal freedom and lifestyle are the biggest benefit though. My wife has a garden, chickens, tropical trees and a turtle pond. I have RV parking and storage for my jetski and dirt bikes. We have painted the house the color we want, changed the roof and upgraded the interior. As long as we meet city codes, we can do whatever we want. Plus, nobody is going to jack our rent, sell the building or make us move out.
But, that’s just me and other people’s situations are different. That’s why I put up reasons to buy and not buy. Some people want to travel the world, live in bad areas, are chasing careers, don’t want to hassle with maintenance, don’t have a stable income, etc. For those people, ownership can become a nightmare and a huge waste of money.
I rented for 13 years when I was young and broke. Plus, I lived beach front and I loved it. We had some good times in the old appartment. But, I sure don’t miss the all-night parties and people parking in my spot.