I was talking with a friend of a friend the other day. He was just informed that his parents were moving out of town and that he would be on his own. At this point he decided that he wanted to move in with his long-term girlfriend. That’s cool. The only problem is that her family will be putting in about most of the money for the down-payment for the home mortgage. That’s a big problem in my opinion because you’ll always be in debt to your in-laws. I’m not sure that’s something that any young person wants.
Before I go off on a tangent, I really wanted to look at the idea of why everyone wants to buy a home instead of renting for the first few years.
Buying a home feels like the next logical move.
Buying your first home is a big move financially and emotionally. Yet for some reason, buying property is a move that we do without much thought at all. We just assume that we need to buy a place. We finish college, find a job, and then want to buy a place. It just feels right to buy a home in your 20s.
Renting is viewed as a waste of money.
I’m not sure why so many of us consider renting to be a waste of money. You’re paying for a roof over your head. Yet whenever I speak to a friend, they claim that they don’t want to rent because they don’t want to waste money. Little do these people realize that home ownership can at times be the biggest waste of money. Think of property taxes, maintenance fees, sometime breaks around the house, or mowing the lawn. There are also those home repairs that need to be made by contractors such as Allstate Roofing, that people overlook before buying a home.With renting you do not need to worry about taking care of those fixes.
Buying a home is seen as passive income.
When it comes to passive income, many of us feel that buying a home is a great strategy for generating extra money without much effort. This couldn’t be further from the truth. Do you know how much work goes into buying a home? A ton.
The only time that buying a home can be passive income is when you become a landlord. Even at this point you’re still going to have plenty of work. You could hire a property management firm or you could do everything on your own. Either way, it’s not going to be easy.