We spend most of our time on here focused on home buying—prices, economics, neighborhoods, etc.—but I thought it might be nice to have a brief reminder that buying a home isn’t for everyone.
For many people, renting is simply the better choice, even if home prices are at a reasonable level supported by the local economic fundamentals. Therefore, without further ado, I present my Top 10 Reasons NOT to Buy a Home:
- Renters don’t have to fix leaky plumbing, pay for a new roof, or buy major appliances.
- The moment you sign the closing papers, you lose ~10% of your home’s value.
- Better job offer in another city? Hope you can afford to sell…
- Lousy neighbors move in next door? Too bad, you’re basically stuck!
- Your down payment and equity are anything but liquid.
- You just moved to a new city and don’t know the area yet.
- You don’t have the financial discipline to save up a down payment (even 5% or 10%).
- Home prices may keep falling, a prospect that you can’t stomach.
- In some neighborhoods, renting will always be a lot cheaper than buying.
- You just prefer the freedom, mobility, and liquidity of renting.
What did I miss?