Product: Home Ownership
Initial Thoughts: It was apart of the American dream and I knew I also wanted something to call my own. I purchased my first home at 24 years old because I always believed in the concept of owning versus renting. In my narrow mind, I felt that there was no reason to be paying someone else’s mortgage without considering the many variables on why someone may choose renting over owning. Basically, it was drilled into me to own something versus renting and that’s exactly what I did.
How it’s Going: When I got my home I recognized that my mortgage was less than my previous rent, but I didn’t consider the other costs like HOA fees and other maintenance needs. At one point, I was house poor. That time was not fun at all! Wisdom has helped me become more aware of counting up all the costs and it’s something I encourage anyone that intends on buying a home to do as well. We use the condo in Anderson, SC as a rental property (currently occupied) and have a home in Texas. The desire for owning more homes is solely based on wanting to have multiple streams of income. We recognize that there is a lot that goes into owning multiple properties so we are working on making sure that we are being fiscally responsible and eliminating as much debt as we can to end 2021. We want to also have multiple properties so that we are able to provide our daughters with a form of passive income so they aren’t solely dependent upon whatever career field they go into. We have become so focused on ensuring that are children don’t start at ground zero and have a heads up in regards to finances.
Now that I’m older, I do recognize that there are circumstances in which renting is much more beneficial than purchasing a home. Certain jobs and careers require relocation on a continued basis and/or extensive travel. Having a home requires a lot of time and effort for upkeep and maintenance. If you’re not around, it’s better to have a place that provides that as a package. Also, apartments are quite luxurious now and offer amenities that rival most neighborhoods. Yes this comes with a price tag to match, it is true that you get what you pay for. I will never again fault people for not wanting the responsibilities associated with owning a home, but I personally can’t contribute 20 years to someone else’s mortgage without putting myself into position to get my own.
Is it Worth it: For me and our situation, YES. This is a one shoe doesn’t fit all situation and you have to be honest about yours. If you’re spending $1200.00/rent and are in a position that you don’t intend on relocating, it makes sense to check your options. Sometimes it’s really easy to get in your feelings and want the forever home first, but that’s not a smart move whatsoever. The rule of thumb is this: Get what you can afford, not what you can buy. This may mean you have to to put some sweat equity in whatever you get to make it like you want, but that’s not a bad thing and potentially will mean that you’re able to list at a higher price if you ever sell. If the market is hot, don’t buy (Wait because most people will get asking). If the market is cold, jump in (and you may even be able to be a little aggressive in negotiations). Before you choose, learn as much as you can in regards to location/projections/taxes and other things that can change over the years.
What is your story with homeownership? Is this something you’ve always wanted and are doing or something you’re considering?