Owning a luxurious, well-designed and expensive house still might be a dream to many people. Indeed, when you start earning of your own, one of the major goals in your mind would be buying a perfect house or buy a house. After all, everyone wants a roof over their heads. But before taking any big decision, one needs to calculate all the risks and then only go for it.
Most of the people consider buying a home as an ideal investment option. But you would be surprised to know there are actually several reasons why you shouldn’t be really thinking of buy a house even if you can afford it.
Here are some of the important points that could change your mind about purchasing a house:
1. Peer pressure
Before you start planning to buy a new home, it is important for you to know that why do you want this? Never buy it because your peers own multiple houses or your family expects you to do so. Remember, owning a house doesn’t define you. One can still enjoy his life even without having a homeownership.
2. Miss out on other opportunities
When you spend a hefty amount of money to buy a home, you eventually miss out on other potential investment plans. You could have invested that cash in stocks and bonds, earning a great income without the financial input.
3. A commitment to stay at one place
This is another major factor which explains why should not consider buying a home. Unless you are rich enough to buy an expensive bungalow in different parts of the world every year, homeownership generally ties you down to one location.
If you are a kind of person who wants to be flexible and can’t stay at one place for next 10 years, then buy a house is not a good deal for you.
4. You can save half of your income by renting
Many people often believe that being a tenant or paying rent is just gnawing away at their pocket. But when you compare the rental rates to an average mortgage payment, you’ll find out that it is saving half of your income.
Precisely, if you are looking to invest your money in other better options, then it makes absolute sense to rent a house instead of buying it.
5. Your house can’t be an investment if you don’t plan to sell it
While it is true that your house value would increase at some point, there are limited chances to make the most of that opportunity. Selling a home is highly troublesome as one has to move out. When you sell your property, you will most likely have to use the equity from the sale to purchase the next home. Unless you have a proper plan for cashing out on your equity, selling home might just serve as a transition point.
6. Homeownership is not for everyone
Owning a home is not an easy task as it comes with a lot of responsibilities. Being a homeowner, it is quite difficult to manage the cash flow every year. Not everyone has the skills to handle it. For an instance, if you purchase a house in a posh area, you need to make sure that exterior walls are painted well, yard is maintained, the décor is updated.