5 Warning Signs…When Not to Buy a House
Steven Leung of the Silicon Valley Real Estate Blog recommends not to buy a house when the financial risk of keeping your home takes away from the enjoyment of it. I totally agree. Buying a home should not be a temporary achievement or satisfaction for the sake of buying a home. It is an ongoing responsibility from the mortgage payments, bills, maintenance expenses and taxes payable.
Think of it as owning a dog. You can work your way to buying a dog. You feel happy until the responsibility sinks in. You just realized that the dog itself is affordable, but you forgot to budget for its meals and upkeep. The dog ended up costing you a fortune than you first anticipated.
The same goes for buying a house. You don’t only have to budget for the actual cost of buying a house but for the on-going financial responsibilities of maintaining it as well. It is better to maintain your sanity and build up your savings until such time that you can comfortably buy a home. Renting is a much better option than facing foreclosure.
Steve’s advises his clients not to buy a house, when they are in this situation:
1. You’re uncertain about your job
2. You have bad credit right now.
3. You’re already in a lot of debt
4. The only way you can afford a house is using an exotic mortgage
5. You don’t have some reserves after your down payment and closing costs.
You can read more about Steve’s article here.
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