Econ 101 says never borrow money on a depreciating investment. A house may appreciate, so it may make sense to buy one. A house can be a blessing or a curse.

Econ 101 says never borrow money on a depreciating investment. A house may appreciate, so it may make sense to buy one. A house can be a blessing or a curse. You should first decide if you want to own one, regardless of the economic pros/cons. Owning a house means you always have a job to do. If that doesn't appeal to you, maybe get a condo? In the US, the best approach is usually to get what's called a conventional mortgage. That means putting 20% down. There are some good reasons for going this route. First, it makes you prove to yourself you have the discipline to put money aside for a house, without actually having the responsibility of a house hanging over you. Secondly, its better financially as you can usually get a better rate and don't have to pay private mortgage insurance. In addition to the 20%, you really need 6 months of money set aside in case something happens. The last thing you want is to default on a loan because something unexpected happened and you have no income for a few months. One of the worst things that happens is someone goes and gets a house with 0% down and without the real financial wherewithal to weather a financial storm. The house quickly becomes a curse when the unexpected happens.