Is Homeownership Right for You?
Homeownership is a pretty traditional life goal. Purchasing property, whether it be a condo or house, has become one of those milestones many of us take for granted. There are many great reasons for wanting to own a home – like being part of a community or raising a family – but homeownership isn’t for everyone. There are many things to considering when deciding whether or not it’s for you, here are a few:
In recent years homeownership has become more attainable for twenty-somethings. That’s great – however, your 20's are still very much a decade of discovery. It’s when we’re still mapping our career paths and figuring out who we are as people. Having the money for a down payment doesn’t necessarily mean it’s time to buy. Are you a rolling stone? Do you battle with wanderlust? If you’re still considering going abroad to teach English, or backpacking across Europe for an extended period of time (regardless of your age), you may want to hold off on buying property just yet.
No one is asking you to predict the future but you should think about where you see yourself in the next 10, 20 years. Do you hope to have children? If so, how many and how soon? The answers to these questions may have you reexamining your plan to buy that shoebox-sized condo in the club district. Owning a home isn’t a life sentence, but keep in mind that short-term buying and selling costs could exceed financial gain.
Saving up for a down payment is the easy part, especially considering 5% is all you need in some cases. But what about all of the other costs associated with owning a home? Have you factored in maintenance fees, property taxes, and home insurance? What about the possibility of higher utility costs and repairs? And let’s be honest, home furnishings will cost a pretty penny too, unless you plan on living in an empty space. Some people will balk at homeownership after realizing the financial investment is much more than they thought initially. Do your research and then decide whether or not it’s worth it.