You've probably dreamed of owning your own home since you were a teenager and sick of your parents' stupid rules.
As you grew up, people told you that buying a house is a great investment, and renting is just throwing away money.
But, for some people, home ownership isn't the American Dream - it can quickly turn into the American Nightmare.
*had to get my WWE reference in there*
A few quotes on home ownership from some very famous people:
- "Owning a home is a keystone of wealth - both financial affluence and emotional security." -- Suze Orman
- "I will forever believe that buying a home is a great investment. Why? Because you can't live in a stock certificate. You can't live in a mutual fund." -- Oprah Winfrey
- "I still think buying a home is the best investment any individual can make." -- John Paulson
Hard to argue with that wisdom, right? Home values have historically risen. There's only so much usable land out there.
Well, that's exactly what I'm going to do. I'm going to argue the other side to show you that home ownership isn't necessarily right for everyone.
Repairs
Let's assume you're not very handy, and you don't have your dad living down the street to do routine home repairs for free.
Contractor prices have gone up significantly in the last few years. Sure, materials are more expensive, and need to be passed along to the customer. But, the prevailing business advice out there on social media is "if you triple your prices and lose half your clients, you're still way better off." Unfortunately, that gets passed along to you as well.
I only have anecdotal evidence for this one, but it's also becoming a real challenge to find qualified contractors that will actually show up, and aren't booked solid for the next 6 months.
Sure, YouTube tutorials are nice, until you mess up the job and have to pay someone double what the original repair would have cost.
Taxes
If you have a fixed-rate loan, then yes, your mortgage payment will be fixed. Unfortunately, taxes are not fixed. We got hit with an increase of over $2,000 this year.
Large Expenses
This could fall under the maintenance category, but if you own your home for any length of time, you have to plan for large expenses that will absolutely be coming. Windows, doors, roofing, siding, air conditioning, furnace, I could go on all day. Prices (and profit margins) on these jobs have also gone through the roof. There's a reason that these contractors & manufacturers spend so much money on marketing and advertising. They're making a ton of money on your back!
Unexpected Problems
What happens when your sewer line collapses? That's usually on you. Many homeowners policies do not cover sewer lines.
What if you get termites? Not cheap.
Leaky basement? Good luck.
Maintenance
Let's face it - cutting the grass, raking the leaves, spreading the mulch is no fun. Regular maintenance can take up a ton of your time, or a disproportionate amount of your money.
The Bottom Line
Home ownership can be the most wonderful thing in the world, but it doesn't mean it's right for everyone.