Do not buy a house for one of these reasons

Thanks to a tight market, the sky-high-high prices and an increased interest rates, the way to home owns is more with obstacles than ever, but buying real estate remains a main goal for most AmericanAlmost 70% We still consider it part of the American dream.

But as much as you may think that you want it, it is important to weigh all financial and emotional factors that go into the purchase of a huge purchase. While it sounds impossible to take into account the size of the engagement, it is surprisingly easy to concentrate on the fear of never finding the right house that you buy for the wrong reasons. If you don’t want to end with an end Pit Or a house that simply does not meet your needs (Or your budget)) It is important to take a step back from the edge and to really examine your reasons for buying a specific property. If it is one of the five below, you should rethink it again.

The view

Some houses offer spectacular views – nature, a city skyline or maybe The ocean. However, buying a home for the view it offers is a bad idea for several reasons:

Cost. Houses that almost always offer attractive views come to a premiumThis means that you spend more for the same amount of house that you can buy in the same area without the spectacular view. And some prospects have additional costs, such as a house with an ocean view that goes hand in hand with a flood insurance premium.
Inconsistency. Although some views will probably not change, you can often not guarantee that someone will build something that will hinder your perspective in the future, or that other changes in the area in your house will not be conspired to ruin your view.
Imperfection. Amazing views can be distracted – if you concentrate too much on the incredible skyline, you can overlook other problems with the home or with things that do not work with your lifestyle just so that you have a nice view while drinking coffee in the morning.

Because “it’s time”

It is easy to compare yourself with other people your age, and if these people buy all the houses, you can catch up. Or maybe you suddenly realize that you are the only person in your group of friends who are still renting. Or only they have made them more or less arbitrarily a check box to check in their list of successes.

But buying a house before you are financially and emotionally prepared can be a disaster. When buying a house, it’s not just about determining a down payment and calculating a monthly mortgage, but a lot Financial factors You have to take into account, including the question of whether you are ready to decide if you are faced with an unexpected repair calculation. You also have to think about your willingness to tackle the really endless control Tasks to maintain budget maintenance Asks a house – or pay someone else to do it for you.

Save rent

It used to be a golden rule: paying a mortgage is cheaper than renting – or if it is about the same costs, do not throw money into a hole at least every month, but build up equity in an investment. The equity part applies enough – your mortgage is buying more and more own property on your property, while the rent only buys you another month that lives in this room.

Thanks to increased prices and higher interest rates, however, the cost section is no longer valid: While you may find a certain house in a certain area that is cheaper to buy than the local rents (especially in a larger city with a hot rental market), nationwide average values show that Rent is cheaper As a home property and will probably stay that way for the immediate future. There is also this annoying insurance and Maintenance costsas well as. If you buy a house because you think it saves money, forget it.

They bet on the neighborhood to improve

Houses in Neighborhoods With a lack of services, high crime rates or many houses that have not taken into account, are generally cheaper. If you have reason to assume that robust improvements come to the region, it can be tempting to buy low and then celebrate when your real estate values rise and rise. The problem with this plan is of course that nothing is guaranteed: whether it is business investments, a state-funded renovation plan or you believe that you see the signs of simple gentrification, any number of factor-powerful contracts, local elections, standstill construction projects, A stagnant economy – can change the course of the events and let them keep their bags.

If you rely on a neighborhood gymnastics sound, many other disadvantages are also connected:

Time. Until their hoped -for revitalization takes place, they live in a shitty area and deal with all the associated disadvantages that could include higher crime, evil neighbors and worse schools.
Steer. If your real estate values rise, you also do your taxes (finally).
Fewer options. If your life takes a curve, you may have problems selling this house or finding reliable tenants due to its location. And if it is cheap to buy, your equity is relatively low until things are picked up (If They take off), which means that they only have limited resources for improvements and repairs.

It is a fixer group

If you buy a house because it is a “fixer-mop” at a bargain price, think twice. If you have experience in the renovation and the Bauhaus and have a solid plan for the renovation of the place, that’s one thing. But if you are Buying a dilapidated place With a vague idea that you will set it up over time, there are many reasons to hesitate:

The unknowns. You really have no idea how bad this house is, why it is so attractive and how much it will be Really Costs for repairs until they start and start opening walls and floors. Your budget? Fiction until they actually see the cabling, plumber, foundation and other essential aspects of the house.
Life in a construction zone. Renovation work throughout the house can take a while As long as a year To complete, and that is when you work continuously and do not hit any problems with soul bodies if you are buried. If you want to do it pieceThe renovation could extend for years, and throughout the experience they will be done everywhere with dust in their muesli shell and anywhere.
Price uncertainty. You can buy a cheap house and take up high -quality work, but that does not mean that the market will cooperate and increase the value of your house enough so that you will receive the return for this investment you hope for. Remember that the money you spend is to repair a house is part of the total cost of ownership. If you buy a bargain for 200,000 US dollars and spend $ 100,000 to repair it, you really spent $ 300,000 for this house -not for mortgage interest, insurance premiums and other random costs. If you add everything, you can quickly turn a bargain into a non-baran.