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YES. You should absolutely buy as soon as possible. I went through this when I was 30 before I got married and wished to hell I'd done it sooner. 1) You don't

YES. You should absolutely buy as soon as possible. I went through this when I was 30 before I got married and wished to hell I'd done it sooner. 1) You don't need to put down 20% anymore. If you have a W2 job and good credit, you can have your loan backed by the government in what is called an FHA loan. 2) Think of home ownership as putting a stake in the ground, but not being tied to that stake. You may only live there for a couple of years. You get a better job, get restless, that's ok. Move! You can rent out that house or sell it and pull some of the equity out of it. 3) Prices keep going up. Buying lets you lock in a fixed monthly rate, removes the fear of rent increases, etc. Heck get a condo and live downtown, live anywhere. Buying means taking control of your living situation and not having to be at the mercy of others.

awinder 7y ago
I agree with your point but disagree with some facts if you will allow some extra, potentially helpful information: 1. You can get into a house with good credit and 5% with private mortgage insurance. PMI goes away at 20%, fha you pay the mortgage insurance for the full term unless you put down +10% and wait 11 years. But you can always refi out of an fha loan, just compare your options because fha mortgage insurance is very expensive. 2. The break-even with financing costs usually means you’ll want to own for at least 7 years. If you know/heavily think you’ll be in a place for less than that and you don’t wanna rent it out then maybe don’t buy. 3. Sometimes prices go down tremendously. But you do lock in a payment, that you can make go down over time. Whereas rents tend to go up over time, or you incur expenses like moving or security deposit lockups etc. Personally I’ve found one of the greatest benefits is that I control the destiny of the property. Every place I rented, the owner did not invest in the property, fixes to problems were done at least immediate cost (long term costs be damned!), etc. Now I can maintain the stuff that can break down well, get ahead of problems, and save a lot of my own time and prevent discomfort. Which is hard to put a price tag on.
im3w1l 7y ago
"Asset management firms are required by the Securities and Exchange Commission to say that past performance is no guarantee of future results"[0] I do agree with your other points though. [0] https://www.thebalance.com/past-performance-is-no-guarantee-of-future-results-357862 https://www.thebalance.com/past-performance-is-no-guarantee-...
tashoecraft 7y ago
That's a very rose tinted glasses view of home buying. Buying a home can be a very good idea, but it could also not be. So you got a better job and want to move, you better hope you can sell, it's no where near a guarantee that you can sell. You should never plan on being able to sell in a couple month period. Houses around where I grew up are taking multiple years to sell with prices the exact same as they were in the 90's. Renting out a home can be very lucrative for some people, but also a lot of work. Boiler breaks on Christmas? You have to fix that and quick. All issues go through you, if you get a management company then there goes your profits. Nothing in live just goes up forever, that's wishful thinking. While you may lock in a fixed mortgage payment, you have maintenance and house expenses. Houses get expensive fast. Anything that breaks, needs replacing, or you decide to fill because of lifestyle creep can cost a lot of money. Your weekends can quickly go from doing activities for yourself or your career to doing house work consistently. Owning a home can be a really great idea and even a good investment, but that's no where near guaranteed and each person should look into there own situation.
- mythrwy 7y ago
  Exactly. I own a home with a well and an acre. I don't spend my weekends out with friends anymore and the list of things to do is endless. It's cool I can do what I want in some regards and have built some equity, but apartment living was so much easier. I honestly really miss it.

awinder 7y ago

I agree with your point but disagree with some facts if you will allow some extra, potentially helpful information: 1. You can get into a house with good credit and 5% with private mortgage insurance. PMI goes away at 20%, fha you pay the mortgage insurance for the full term unless you put down +10% and wait 11 years. But you can always refi out of an fha loan, just compare your options because fha mortgage insurance is very expensive. 2. The break-even with financing costs usually means you’ll want to own for at least 7 years. If you know/heavily think you’ll be in a place for less than that and you don’t wanna rent it out then maybe don’t buy. 3. Sometimes prices go down tremendously. But you do lock in a payment, that you can make go down over time. Whereas rents tend to go up over time, or you incur expenses like moving or security deposit lockups etc. Personally I’ve found one of the greatest benefits is that I control the destiny of the property. Every place I rented, the owner did not invest in the property, fixes to problems were done at least immediate cost (long term costs be damned!), etc. Now I can maintain the stuff that can break down well, get ahead of problems, and save a lot of my own time and prevent discomfort. Which is hard to put a price tag on.

im3w1l 7y ago

"Asset management firms are required by the Securities and Exchange Commission to say that past performance is no guarantee of future results"[0] I do agree with your other points though. [0] https://www.thebalance.com/past-performance-is-no-guarantee-of-future-results-357862 https://www.thebalance.com/past-performance-is-no-guarantee-...

tashoecraft 7y ago

That's a very rose tinted glasses view of home buying. Buying a home can be a very good idea, but it could also not be. So you got a better job and want to move, you better hope you can sell, it's no where near a guarantee that you can sell. You should never plan on being able to sell in a couple month period. Houses around where I grew up are taking multiple years to sell with prices the exact same as they were in the 90's. Renting out a home can be very lucrative for some people, but also a lot of work. Boiler breaks on Christmas? You have to fix that and quick. All issues go through you, if you get a management company then there goes your profits. Nothing in live just goes up forever, that's wishful thinking. While you may lock in a fixed mortgage payment, you have maintenance and house expenses. Houses get expensive fast. Anything that breaks, needs replacing, or you decide to fill because of lifestyle creep can cost a lot of money. Your weekends can quickly go from doing activities for yourself or your career to doing house work consistently. Owning a home can be a really great idea and even a good investment, but that's no where near guaranteed and each person should look into there own situation.

mythrwy 7y ago
Exactly. I own a home with a well and an acre. I don't spend my weekends out with friends anymore and the list of things to do is endless. It's cool I can do what I want in some regards and have built some equity, but apartment living was so much easier. I honestly really miss it.