February 28, 2022
Q. Should I buy a house?
Amy's Take: Does it always seem like I answer these questions with “it depends?” Home ownership isn’t for everyone and in some areas of the country it will ultimately mean that 50% of your income will go towards the cost of owning that home. It also depends on how long you are going to live in a certain area and if you can recapture those purchasing costs. Some of this decision is based on math (i.e., comparing the costs you will never recapture such as insurance and taxes), and some of this is based on emotion (I want to put down roots, and I feel safer if I own my home).
Becky's Take: Think about what maintenance will need to be done, who will do the maintenance, and how much it will cost to outsource. This can be anything from mowing the lawn to fixing an appliance.
Kate's Take: When comparing the cost of renting versus buying you need to compare more than the mortgage payment versus rent. Include the additional costs of ownership such as property taxes, insurance, utilities (including water, sewer, and disposal), ongoing maintenance, and larger repairs.
Every person is different, as are their goals, so we have a checklist on “What Issues Should I Consider When Buying a Home?”
Do your friends ask you financial questions?
Pass those questions on to us at AskRPG@rootedpg.com and we will feature them in our future newsletters under this section.