Why not buy a home? Okay, the fact is that every single adult that I know would like to own, own more, or invest in real estate! In fact, it is the age-old American dream to be able to do so, it signifies freedom, wealth, and independence. The fact that I’m a real estate broker amplifies that tenfold in the number of people I know who want real estate. I want to share with you why it is possible that you shouldn’t even think about investing or owning real estate at least for the time being, because it can potentially be wasting much of your time and make you feel like you’re missing out when you actually aren’t. I hope that this article can help people recapture their time from looking endlessly at websites like Zillow, Red Fin, and Realtor.com. Instead of looking at websites like that take a look at some of my other articles that may actually benefit you right now such as “Being cheap can be costing you money!” or “5 Strategies to selling and/or donating your unwanted items“!
Why not buy a home? There can actually be many unfavorable things about real estate that people overlook from being blinded by wanting a home of their own so badly. I’ve seen some very intelligent people buy, sell, & invest in real estate over the years sometimes with no gains and even at a loss at times. Here are a few unfavorable things about real estate that everyone should consider. 1 It costs money to purchase, 2 it costs money to maintain, 3 It can cost a lot of money to repair or remedy issues, and 4 You have to manage it, possibly deal with tenants. Now these may not be a big surprise to most people but let me ask you this: Why do some people end up losing properties due to short selling or foreclosures? People lose properties of the exact unfavorable things that I stated. I have even known people with great jobs who owned large homes in prestigious neighborhoods but when nearing retirement they ended up with no equity because they were living above their means maintaining and keeping up with the Jones. You could be living above your means whenever you refinance to pull money out of your primary residence without a plan to replenish it, using it to renovate or for some type of luxury. Some people can’t let go of micro-managing their rental because of not having enough money so they cheap out and end up running the thing to the ground. Only when it is too late do they realize that they were better off doing something else with their money. If you inherited a property that still has a mortgage owed it could be your best option to sell before you end up having trouble with the payments if you’re income doesn’t yet suffice.
Why not buy a home? For many reasons, purchasing is not beneficial to people during certain times of their lives. People can either not have a steady enough income, they want to travel, or they want to do other things with their money and life. Because situations change for people, there are many unexpected circumstances in life, and at the end of the day, a home that is lived in and not monetized is purely a luxury. In general, it costs more to own than to rent, it takes more responsibility to own than rent, and it takes consistent income to keep and maintain a home/mortgage. There are many house-poor homeowners currently, What do you think could happen if there is a major economic downturn that makes people lose their jobs?
Why not buy a home? Everyone wants to own but remember that ownership is a luxury that you have to be able to afford or it is one that you can lose. I’ve been in the situation before of wanting property of my own so badly so I do know how it can feel, but everyone with that thought needs to be realistic about the fact that they may not be able to afford it at the moment or circumstances are not right at the time being especially with the current high home prices. For some people, their lifestyle doesn’t allow them to be good owners or even landlords. It may not be smart to take on the expenses of a home in many situations. Also not owning may be one of the best stepping stones for a person to make more money. Remember that the home you occupy fully in is not an active income generator but a consistent payment expense. As I always say, every situation is unique so everyone needs to assess their situation uniquely, and don’t compare yourself to others if it does not benefit you. We are all on our own paths, be appreciative of what you have so that you can positively pursue what you want! Real talk is that real estate requires financial backing to keep and that there are many pros in not having a mortgage that people overlook. The idea of homeownership is romanticized especially during hot real estate markets and stable economic times. I will end with the fact that real estate is an excellent avenue for investment, and ownership is beautiful for people with the money, consistency, responsibility, and knowledge to own it beneficially.