Are you feeling pressure to buy a house?
Are you missing out on the appreciation of real estate?
Is it time for you to buy a house?
You may feel pressure to buy a house. Maybe your friends have started buying houses; or your family is telling you it's time to stop throwing your money away on rent. On top of all that, the market here in central Texas has gone through unbelievable appreciation in the last 18 months. If you aren't on the real estate train - you may be experiencing a fear of missing out.
Are you in a place where owning a home would be a blessing or a burden?
Many think about this question only in financial terms. Before we even consider the financial component, there are some more basic questions to be answered.
- Am I confident that I will live in the same place for 3 and preferably 5 or more years?
- Do I know the area well enough to know where I would like to live.
- Is my career and income somewhat stable?
- Would I take pride in fixing up or maintaining my home, yard work and the other responsibilities that come with owning a home?
Buying a home can be a blessing. It can provide a level of stability, joy and pride that little else can.
However, buying a home when you are not ready can become a burden.
If you are uncertain of where you will want to live in 2-3 years, unclear on what your career path holds or are likely to go through many significant life changes in the near future, there is no shame in renting.
If you do not have an Emergency Fund set aside a dip in income could potentially lead to losing a home. There is no shame in renting until you have that Emergency Fund.
If you do not know that you can afford the monthly payments and other costs that come with owning a home, there is no shame in renting until that is resolved.
If you are ready to settle in one place for awhile and take on the added responsibilities of a home then it may be time to consider how much house you can afford.
Stay tuned for our next letter on determining how much you can afford to pay for a home.