The past few months, I have found myself obsessing over buying a home. Part of it is due to the fact that we don’t have any debt and it’s one of my long-term financial goals. I also hate renting (and feeling like I am throwing money down the toilet instead of building up equity). I am sure there are many other factors that come into play (like how my parents always owned their own home instead of renting when we were growing up), but suffice it to say that it is on my mind. I am still a couple years away from being prepared to buy a home, but it won’t stop me from thinking about it.
Home ownership is never something you should jump into without examining the true costs. I remember hearing experiences of people close to me buying a house before they were ready. They had a “stable” job and wanted to buy their own home, so they took the leap. They didn’t have a lot saved up, but had enough cushion in their monthly income that they weren’t worried. The past few years, with the housing market practically collapsing, have forced people to become more cautious when buying a home. While most of those closest to me have been lucky to keep their homes, they do have a greater appreciation for financial security, especially in respect to managing their debt. This is why I elected to share this infographic. It does a great job at illustrating the different trends, in respect to debt, that homeowners and renters face, which helps illustrate some of the other expenses that you don’t normally associate with home ownership. Enjoy!
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Good luck on the decision. Why don’t you think you’ll be financially ready to buy a home for a few more years? If you don’t have any debt I’d assume you have some savings/investments built. While the rates might not be moving for awhile, this is as great of a time as any.
I think you are so smart to be researching this so thoroughly before even thinking about buying a home! I think so many people buy before they are ready. In fact…I think we bought before we were financially ready. It definitely has everything to do with the fact that we had a family at such a young age and wanted our own, safe home for our baby. I guess that’s life, but I do recommend (if at all possible) to not jump into it unless you absolutely have to. Having an established emergency fund, enough money to put down 20%, and a stable position in a good company should all be considered imho. Such great advice for young buyers and renters thinking of taking the plunge, Corey.