4 Considerations If You Want to Buy a House — But Can’t Afford It

Buying isn’t always better than renting

This isn’t a “spend money to make money” situation

  • The fact that your home equity doesn’t actually pay your bills; Zillow can tell you whatever it wants for your estimated home value, but the only thing that matters is what someone will pay for it if and when you try to sell.
  • The cost of property taxes and insurance over time.
  • Every single mainentance and repair bill you ever pay, from a $49 routine checkup on your washer and dryer to jobs that can cost tens of thousands of dollars to complete.
  • All of the cash you might put into renovations or improvements; while these can boost the value of a home, it’s very rare to recoup 100% of the money you spent and even more unlikely that you will make an actual return on a specific project.
  • The miscellaneous expenses of home ownership that we tend to forget: the lawnmower you had to buy (and eventually replace), the appliances you needed to purchase yourself (rather than a landlord taking care of it for you), the infinite amount of trips to Home Depot…
  • Opportunity cost, or what else you could have done with all the money you put into your house while you owned it.

Just because you can’t buy now doesn’t mean you can’t in the future

Adjust your budget

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Eric Roberge

Eric Roberge

#FinancialPlanner helping 30 & 40-somethings build #wealth & think differently about #money • Top #FinancialAdvisor in #Boston • www.BeyondYourHammock.com