Everyone tells you you’re going places, and of course, you believe them. You’re 26. You’re a supervisor at a multi-national marketing company. You get a six-digit pay monthly. What’s more, it looks like you’re headed for greater and bigger things in the company hierarchy. Do all these mean you should get a house?
Mortgage lenders would be the first to tell you owning a house is good, and it is – in principle. In fact, owning a house is a great way to build wealth over time. What mortgage lenders don’t tell you, however, is that this does not mean everyone should be a homeowner. Homeownership entails a lot, not just monthly payments. You’d have to be dedicated to home improvements, for example, and you’d have to faithfully discharge your debts on time to your mortgage lender. So, if any of the following is your reason for wanting to buy a home, do not contact your mortgage lender just yet. Sit down, lean back, and read on.
1. A house is a solid investment.
Yes, a house is a great way to build wealth over time; and yes, you put your money to good use when you buy a house. However, if it’s only good...