So you’ve been spending a lot of time in your apartment recently and you’ve realized you pretty much hate it. And despite the economy doing whatever the economy is doing, and the whole virus thing, you’re thinking about taking the leap into buying a home. Obviously, you’ve picked a real doozy of a time to get into the housing market but before you sign anything, take a minute to consider these few things before leaving the rental life.
- Don’t think of a home as your main investment.A well-balanced stock and bond portfolio, now that’s a good investment. A house? Not so much. According to Yale economist and Nobel Prize winner Robert Shiller,the housing market doesn’t have a great long-term return and it barely outpaces inflation. So if this is your main reason for buying a home, it’s probably best to keep renting, and invest elsewhere.
- Avoid being “house poor.”The rule of thumb says you shouldn’t buy a home until you can afford a 20% down payment, but that could use some updating. It should really be, wait until you can put down 20% and still pay your monthly expenses with ease. Without that little clarification, some people are jumping into buying a home and slapping all their whole net worth into it. But being “house poor” is a risky business. It’s usually better to rent than it is to have all your money wrapped into a house. Living hand-to-mouth simply isn’t worth it.
Check out more tips on whether to rent or buyHERE.
Source:LifeHacker