Reasons Not To Buy a House
Many people today are feeling the pressure to become homeowners. In America and all over the world, owning property is often considered to be the final step towards becoming a financially secure adult. But nowadays, there are also a few reasons why purchasing a home might be a bad idea.
First of all, it's a permanent thing. More permanent than an apartment, anyhow. Home buyers are making a financial commitment to that property for some period of time. If you aren't settled in a job, or even in a city, where you can see yourself for at least a few years, it's really not time to be purchasing a home. Rental life offers the convenience of year-long leases, and moving out of a rented home is a far simpler process than moving out of a house where you hold a mortgage. If you do purchase a home and decide to sell it again in a short period of time, the cost of buying and selling transactions might mean you pay quite a lot for your freedom. It's common sense: If you're still on the move, or if you might be in the near future, then let your largest asset be your car. You'll save yourself a lot of headaches later.
Secondly, remember this mantra: If your credit's not great, it's wise to wait. While people with low credit scores can manage car loans and credit cards without huge amounts of damage, a home is a much larger purchase. Consequently, the penalties for poor credit scores are much larger in comparison. If you're talking about the difference in rates between an $80,000 house and $7,000 used car, you're talking about a pretty big difference. Many people have the mistaken impression that if they can just get into a home somehow, they will be able to improve their credit scores more quickly than they could otherwise. It's true that making payments on a home you plan to own gives you instant equity and will improve your credit; however, if you can't afford it, you will be in a much bigger mess than you were at the beginning. Work on your credit score by making smaller purchases that you know you can afford, and make your way up gradually. Jumping in and buying a house with poor credit is a bit like running a hundred miles on your first day of exercising. You think you'll be able to move several rungs up the ladder, but the chances are much more likely that you'll just crash and burn.
In spite of the pressures, there's no reason to buy a home if you're not ready. As with any other financial investment, it's an important decision that is best made according to each individual case, and what is right for some people can be the wrong choice for others. If it's not the right time to buy, don't worry about it. Someday, it will be.
954-261-3361 James LoftisLl