Should I buy a house?
It’s not a one-size-fits-all decision
Deciding to buy a home is not as simple as “Well…I’m throwing away money on rent” – it’s important to be informed and prepared about what it means to purchase a home. I encourage all first-time homebuyers (and even those who have already purchased in the past) to consider several factors when deciding to purchase a home.
“Your rent is the most you’ll ever pay and your mortgage is the least you’ll ever pay”
The mortgage is only one of many costs associate with home ownership. Did you know that it’s recommended for home owners set aside 1-4% of the value of their home each year for maintenance and repair costs?
Here are some common expenses that arise during home ownership and estimates of average prices:
| HVAC replacement: | $8,000 – $13,000 + |
| Refrigerator: | $600 – $2,300 |
| Roof replacement: | $9,500 |
| Dishwasher: | $400 – $1,200 |
| Septic system maintenance: | $250 – $500 every 3-5 years |
| Water heater 40 gallons: | $440 – $2,300 + install |
Sources
Nerdwallet – Calculate Your Home Renovation and Repair Costs
When renting makes sense
When renting a place to live, you can have peace of mind knowing “that’s not my job” when something breaks or goes wrong. You also have the freedom to move from place to place, city to city, or wherever your heart desires on a much easier timeline than if you owned.
When buying makes sense
Buying a home can be a wonderful endeavor. It can give you more freedom and control over your living space to make it your own and maintain better privacy. You’re more in control of how long you stay and how you want to decorate and renovate while you’re there.
Some ownership benefits:
- Freedom to take on new projects as you please, like adding wallpaper, landscaping, renovating kitchens and bathrooms, changing light fixtures (the list goes on…)
- Equity: a house (and the land it’s on) is an asset, and money put towards the principal builds net-worth. Houses generally grow 3-5% in value each year (source)*
*Value increase estimates are for trends that tend to be true long-term and are not a safe bet as short-term investments. Equity in a house is not liquid.
Bottom Line
Nobody, even a real estate agent, should ignore the realities of what it takes to purchase a home. We’re sold the “American Dream” – this can often mislead us into making decisions that don’t actually fit our unique lives. Home buying is an important decision that involves life and financial planning and you deserve to have a go-to person with your best interests at heart that knows the industry. That’s why I focus on building relationships, building community, and sharing my knowledge to help others make decisions that are truly right for them at every stage of life – whether or not that involves purchasing a home.
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