Topic: I'm 30, have a roommate, and rent ... I'm OK with that
Key Words: Inflation, Supply vs Demand, Loose Lending
Word Count: 450
Tomorrow's Likely Topic: What I Did on my Summer Break
Since I've reached my third decade of life, there seems to be lots of concern around the fact that I'm not a home owner. Perhaps I'm just defensive on the subject. Regardless, I thought I would explore the topic, and drive home what I believe to be the only excuse to buy a home.
I think houses are, for next 30 years, crummy investments. Let's just go ahead and get that out in the open. In short, we've just lived through only the second time in history in which housing appreciation outpaced inflation. That fast appreciation was brought on by a supply vs. demand flip-flop caused by shady banks lending to shady people. Since those lending practices have left the economy teetering on the edge of a tumble, I doubt we'll see such loose lending again. Houses will, and should, only appreciate at inflation. The reason? They can't make money. If something can't make money, why would it's value go up more than inflation? The only way would be if supply vs. demand were thrown off; as I've stated, it's only happened twice, and it ain't happening again. This MSN Money article sums it up best.
So you might think I'm saying you shouldn't buy a house. Quite the contrary. I'm just saying you should buy a house when you feel ready. Not for potential financial gain, not for social gain, and not because you think everyone is wondering why you don't have a house (that last one is for yours truly). Buy it because you want it and intend to stay in it for a while. Simple as that.
As for me, I don't want it. Despite nine years in the same city, with the same company, I'm sure I'm on the brink of a change! Well, not really, but just as some people value "owning something big", like a house, I value the limitless freedom an apartment represents versus a house. Also, most importantly, I stay fairly busy. I don't have the amount of free time that I would want to put into my house. I think, for the first time, I might know what would drive me to purchase a house. If I'm right, and that day comes, then hopefully I'll do the right thing, and purchase because I like the house and because I want buy. Like I said before, simple as that.
What's would drive you to such a decision? Inquiring minds need to know. Though I guess there are certain things that would cause me to make such a purchase as well...
ReplyDeleteActually, I don't know that I believe in linking it to a thing. It's easy to say "when I'm married, I'll buy a house". But that's not why you are buying a house. You're doing it because you are content and believe big change is not coming your way. Hopefully, I've learned enough about myself to know when that state of contentment strikes, no matter it's form. When it does, bu-yah, house time. I think that's what does it for most people, and that's why folks buy a house when they get married; they are content.
ReplyDeleteAnd your reasons for a home purchase would be??