Should You Buy a House?

Whether it’s friends, family, or colleagues, it seems like everyone these days wants to buy a house. The issue about this topic is that buying a home should be based on whether or not it it suits your personal financial goals and aspirations, as opposed to just buying a house because everyone else is doing so. I’ve assembled some pros and cons to buying a house – use it as a checklist to see if buying a home is right for you:

buy a home image


  • A home of your own: Buying a house is essentially making a house a home. You can finally get out of the grind of paying rent every month and you know that you own the home (at least once your mortgage is paid off).
  • You don’t need to buy it in cash: The staggering prices of homes today means that most of us cannot afford to buy a house in cash. There are many different types of home loans available, but it usually comes down to a 15 years or a 30 years mortgage.
  • You can use a house as an investment: Most people would love to be property developers. One way to do this is applying for a mortgage to buy a house and flipping it for a profit to make extra market. There is no guaranty that you’ll make money but it is a very popular avenue for people who are tempted by rising house prices and low barriers to entry.
  • Building equity: While it’s no longer the case to assume that everybody builds equity in their house, it’s relatively safe to say that you SHOULD build some equity when you buy a home. We’ve built up quite a bit of equity since we bought our home 3 years ago and the cash will help go towards the down payment of our next house!


  • Your credit has to be superb: The thing to remember about buying a house is that your credit has to be excellent. You have to try and repair it if it is not good or it should already be in good condition because lenders want to know that you are serious about meeting your mortgage obligations each month.
  • You have to be committed: If you are someone who is unsure where to place your money, it might not be a good idea to buy a home because you have to see a house as a long term investment.
  • It could be a money vacuum: Houses are expensive and a lot of people jump into them without realizing what they’re getting into. In addition to the mortgage there are bills/expenses like property tax, insurance, maintenance, large repairs, and home owners association dues. Be careful not to get trapped into something you can’t afford.

Buying a home can be a great thing if it’s done by the right person, in the right situation. Try to avoid keeping up with the Joneses and focus on making the best decision for your and your family.

Picture by FreeDigitalPhotos

About the Author

By , on Jun 23, 2013
Andy Tenton
Andy is a 30-something New Yorker who turned his financial life around. He took charge of his finances, got out of debt, and is now working his way toward financial success. He is the publisher of

How to Become Rich e-Course

Budgeting 101


  1. For a person wanting to own a house, he or she should really think about it a lot before making the purchase. I agree with you, having a house really requires your time, dedication and your money as well.

  2. Jon Haver says:

    If you aren’t able to live in the house for at least 5 years then you should definitely consider renting. The transactional costs of ownership are often not considered when young people buy homes. Myself included, I was surprised at how much all the transnational costs added up to.

  3. Alex says:

    I can definitely see some advantages to buying, but it isn’t an option in any areas that are convenient.

  4. Terry says:

    I think buying a home is a great way to build wealth.

    Start by buying an inexpensive property (small house, condo, or townhouse) and live in it a few years. Then, you have some equity built up. Refinance the house, use the equity to pay for a second house. Keep the first house as a rental. Now you have two houses building equity, and some rental income.

    Repeat the process as often as you desire.

  5. Mary Slagel says:

    I would like to add another con/pro (whichever way you see it) If you are not in a stabile job or know for sure where life is leading, you may want to avoid buying until you are fully settled down and can make a commitment to the city/town/neighborhood.

  6. Mark says:

    Where I live and grew up I cannot purchase a house for less than $400,000. Looks like renting it is! Would love to buy, but would have to commute an hour each way everyday to find a house for less. Ouch…

  7. Leanne F. says:

    I am so torn on whether or not I should buy, I’m still in school getting my masters but I would like to not be paying rent to somebody else but rather would like to invest it or feel like im paying forward. I’m working with an investment group to try and finance it. Thanks for the advice I have been trying to do my own leg work recently.

  8. Helpful pro/con list. My husband & I are currently searching for homes in the area but found houses are ridiculously expensive so we plan to go with a condo. We can pay one off in 3-5 years and if we decide to get a home we can either sell the condo or rent it out since we live in a transient town where there’s always people looking to rent.

    • Andy says:

      Paying off a condo that quickly is extremely impressive! If you’re able to do that I’d probably try to rent it out before I’d look to sell it. That’s some passive income that would be pretty easy to come by.

  9. It depends on the person’s situation and lifestyle. Personally, owning my own house is a goal as I have a family and I just don’t feel that secure with renting. I do not want to rent forever. There’s nothing quite like owning your own house.

  10. I’m a big fan of owning our own home for two reasons. One, I like having my own place. Two, it’s about the same price as renting in Houston, TX – even with property taxes. That’s why we bought our first home at age 22 – $740 for rent that was raising to $800 for a 1000 square foot apt…or we could buy a 1750 sq.ft. house for $900 a month…hmmmm…

  11. You should look at a home as a place you want to be forever. If your home doesn’t fit that criteria, it probably makes better sense to rent.

  12. We love our house and I can paint each room a different color. We have lots of equity also, so it was a good choice. Depending on where you live, it might not make sense, but owning you own little piece of America or wherever is pretty sweet.

Leave a Reply

Your email address will not be published. Required fields are marked *

Disclaimer and Stuff

The articles are written by personal finance enthusiasts (not certified professionals) based on their personal experience. What works for them may or may not work for you, and you should always consult a financial advisor before making important financial decisions.

In accordance with FTC guidelines, we disclose that we have a financial relationship with companies mentioned in this website. This may include receiving access to free products and services for product and service reviews and giveaways.

Any references to third party products, rates, or websites are subject to change without notice. We do our best to maintain current information, but due to the rapidly changing environment, some information may have changed since it was published. Please do the appropriate research before participating in any third party offers.

For additional information, please review our legal disclaimers and privacy policy.