If you want to buy a house, make sure it’s not for any of these reasons. Image source: Mark Moz , via Flickr.
Buying a house is a rite of passage for many Americans, but the conventional wisdom behind the decision is — in my humble opinion — backwards. In fact, I think purchasing a house for the wrong reasons is one of the most financially and emotionally disastrous decisions young people can make.
My wife and I are both in our mid-30s — with a two-year-old daughter — and have yet to buy a house. The day may soon come where we are homeowners. But in the interim, we’ve had plenty of friends tell us that we’re making a mistake by renting. When we asked them why they bought their house, we’ve heard some doozies.
Here are the three most flagrant — be sure they don’t factor into your decision-making process.
“Real estate is a great investment”
Lots of people look at their parents’ situation with envy. For instance, my parents bought their house in the mid-1980s for $100,000 and it’s now worth about $250,000. If they ever choose to leave, they’ll realize a 150% return on their