If you are thinking about buying a home for the first time, this might sound like a monolithic undertaking! Believe me, it’s not. Well…you will have to sign a lot of paperwork and spend a lot of time on the phone. But at its most basic, it’s something people have been doing forever. And if your one cousin can figure it out, you surely can too.
Renting versus buying have various pros and cons. On the one hand, you’ve got the simplicity of renting. You don’t have to pay for repairs, property taxes, a down payment, that kind of thing. On the other hand, you are paying some other schlub’s mortgage every month. That’s money you’ll never have back again. When you’re paying a mortgage, you’re paying yourself every month.
Buying a house is complicated, but once you get your ducks in a row, it’s really not that bad. If you’re buying your house with a partner, it’s important to make sure you aren’t buying beyond your means (something this video goes into a little more detail about – it calls this ‘not being an idiot’). But for what you can presently afford, not for what you can one day afford.
It’s also important to make sure you’re on the right page with your partner about all aspects of the home – what you hope to do with it, how you plan to grow into it with all aspects of your life. If you’ve got all this stuff worked out, now you’ve just got to find a place and get the money situation in order. Talk to the people who made this video. They can help you with the nitty gritty. And don’t worry, the world wants you to buy a house. It’s good for the world when you do it. So you’ll have a lot of help along your way. Just ask, and before you know it, you’ll be in a new house of your own.
Hi, my name is Jon and I run Compounding Pennies. I’ve been interested in personal finance since high school and love writing and talking about it. You can learn more about me in the Authors section of this site.