The case for buying a property
have pets or children or furniture. I move between houses (and cities) every few months, but I sure wouldn’t want to do it forever.
If you’re on a periodic tenancy, the spectre of being turfed out with 90 days’ notice constantly hangs over you. This is disruptive and expensive.
4. Retirement security
When you’re old and grey, the last thing you want to worry about is rent increases, or having to uproot your life. There’s no escaping the fact that home ownership is one of the single most important factors for wellbeing in retirement.
5. The fuzzy stuff
Maybe you want to knock out some walls, or put in a garden, or paint the walls hot pink, or get a dog, without having to ask anyone’s permission. It’d be nice to settle into the suburb where your kid goes to school, and get to know your neighbours, and generally put down some roots.
These intangibles have nothing to do with money, but they blow all the other factors out of the water. For most prospective buyers, this is what home ownership is all about.
The decision has such a huge impact on your finances that I think it still makes sense to give some careful thought to the cold, hard numbers. Ask yourself what would happen if you lost your job, or the market fell sharply.
So long as you have good answers to those questions, that’s the most important thing.
Even if it’s a questionable investment, buying a home might be the best purchase you ever make.
Got a burning money question? Email Budget Buster at richard.meadows@thedeepdish.org, or hit him up on Facebook.