For those of you that purchased my manual on deciding if you should buy or rent a home in your 20s, you’ll remember that I suggested that you really shouldn’t rush into a home purchase. I said this for a reason. I’ve personally heard from many friends that they regretted rushing into a home purchase. I also must confess that I’ve been guilty of this myself.
Today I wanted to share my personal story of rushing into a condo purchase and why it can back fire. I was so excited to buy a condo a few years that I only looked at a few units before I even made my decision. That’s like going on a few dates and then getting married. Not a good idea! Sure it could work out for the best. The odds are against you.
While I’m pretty happy with my condo purchase, it has led to a few issues that I want to share with you guys. What are the problems with rushing into a home purchase?
I have less freedom.
There’s just less freedom in your life when you’re essentially forced into four walls. You can’t travel as much, you can’t spend money as much, and you generally have less options. Buying a home comes with many new expenses. Which brings us to the next point…
My cash flow is restricted.
You have much less liquid cash when you’re a home owner. You have to spend much more money on the plethora of bills that goes along with your property. These new bills include: property taxes, utilities, maintenance, cable, repairs, and of course your mortgage.
The restriction of cash flow forces you to become much more frugal and budget-conscious. You can’t spend as much money when you go out. You definitely can’t be getting into frivolous purchases. Simply put, home ownership will restrict your ability to make other purchases with your money.
It’s tough to go back home.
Once you get the taste of independence you really don’t want to go back to living with your parents or with other people. Living on your own is very expensive. It also comes with a ridiculous price tag. The flip side is that when you’re tired of living on your own, you’re really not going to want to move back with your parents. What do you do?
Did you rush into a home purchase? Do you have any stories of a friend regretting a home purchase?
