Buying a home for the wrong reason can be a trap

Home Buying Traps

Buying a home is a great investment. You're accruing money for your future, you're not throwing away money on rent and you can use the equity in your home or your home's value to get cash when you need it in the future. Buying a home also has psychological benefits and practical benefits, such as not having to deal with landlords, being able to do what you want with the home, including painting and remodeling and having a secure place to live. But sometimes it's possible to buy a home for the wrong reasons, which can make you miserable and lead to emotional and financial hardship down the road.

The Right Reasons to Buy a Home

The right reasons to buy a home include things like:

•      Creating an investment for the future;

•      Wanting to put down roots in an area;

•      Wanting to give your child a good place to grow up;

•      Want to start building equity so you can move to a bigger home later;

•      Like the school system and neighborhood;

•      The home meets your living requirements and needs.

The Wrong Reasons to Buy a Home

Buying a home for the wrong reasons can be devastating in the long run, and may include things like:

•      Buying because your parents want you to;

•      Buying because you feel it's expected;

•      Buying a home as part of an ultimatum in a relationship;

•      Buying a home because it's part of the management track at work;

•      Buying to complete an imagined picture of what your life should look like.

Being Stuck in a Home You Don't Want is Miserable

Buying a home for the wrong reasons can make you miserable. Buying just because your parents expect you to, or because you're in a relationship with someone who desperately wants a house, could ultimately lead to misery and financial hardship. Buying to please someone else can put you in a home you don't like, and cause you to resent the person you were trying to please. This can actually ruin relationships in the long run.

Wait until you're truly ready to buy. Don't be bulled, coerced or tempted into buying a home you don't want or aren't ready for. It's a long-term commitment, and making the wrong decision up front can lead to misery and financial ruin.