Just few days ago while surfing the net, I run across a forum post about a single guy’s dilemma on whether buying his own home is a practical choice. Rationals like renting is cheaper than buying, and an owned house or condo costs more to maintain only gives the guy more reason to avoid buying his own house. Read the rest of the forum post here.
But, is buying your own home is really a practical choice?
Your own home is as important as your own car.
Just like your car, your home is also a necessity. As long as your are walking in this world(or city), shelter and transportation will always be a part of your yearly expenses. In the long run, you’ll realize and be thankful that your own home saved you a lot of expenses. Deciding to buy your own home instead of renting should be as easy as deciding to buy your own car instead of paying for a taxi.
Your own home is your asset.
While renting, the money you pay goes out of your pocket forever. If you buy a house, your payment becomes an asset which you can turn back into cash by the time you sell or rent out your property. A real estate property is a good collateral too!
Still wondering if buying own house is a practical choice? My advice is to go ask other people who already purchased their own home if they ever regretted with their decision.
A friend of mine who went through a financial distress decided to sell his own house that he had bought years ago. He got the cash and bounced back from the problem. This should not have been possible if he has been paying for the rent instead of a monthly amortization.