Why Are People So In A Rush To Buy A House?

I am 25 years old, single, no kids, finished college, have a career and just about done finishing my college loans. After I finish paying off my loans, I am going to buy a new car (not a new, new car... but something is in good condition).

Over the past 3 years... I have been seeing my high school friends or people I know (people who are 21-26) buy houses or look into getting one.

What's the point of rushing to get a house so soon?

When I was a kid, my parent's live in an apartment for years... and then they upgraded to a condo and in their late 30s, they upgraded to house when they had more kids.

I think houses are great when you have a FAMILY or if you are extremely wealthy and can just buy one with ease. Also... once you get a house and get locked into that mortgage, you can't just walk away from paying it off... you are basically trapped in that location.

For me, personally... I am going to continue living in my apartment until I start a family... and then I will think about getting a house.


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Most Helpful Girl

  • Over the last hundred years the purchase of a home house has proven to be the safest way of investing. Assuming a 30 year mortgage which is rare nowadays but was not rare in recent years passed, you are paying off an investment that appreciates in value. The $220,000 home that you purchased 30 years ago is now today worth approximately $450,000. It is actually a forced savings in that a house kept up well accrues in value. In addition you can borrow from the increasing value of the house. But nothing is wrong with your approach. You need not purchase a home without having a wife and eventual family.

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Most Helpful Guy

  • You buy a house soon as you can because all the money you're paying down on the mortgage becomes equity for you later. When you rent all the money just goes to the landlord and you'll never see any of it again so houses or see a pretty good investment where as the car and apartment are not. And if you hunt around for a decent mortgage you can quite often end up paying less on your mortgage each month and you would for an apartment so a lot of times it ends up being cheaper than renting and years later you have something to show for it.

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    • Technically most of the money paid goes to paying interest and not the principle loan. It takes about 15 years on a 30 loan to be paying half towards the principle.

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    • Yeah and writing the interest off is nice if in a high tax bracket. There's a lot of places in the country where prices haven't varied much, but if living on the coast or in other extreme price fluctuation areas I think now is a risky time to buy. Historically house hold income is about 2.6 times the total mortgage. Right now the average is about 4-1 to 4.2. So historically prices on average are very inflated.

      Also if you look at historical recessions they have happened about every 4-10 years. Our last one was in 2008
      static. cdn-seekingalpha. com/.../... remy-Robson. jpg

      Most of the world's economies aren't in a good situation, despite the amount of government assistance with quantitive easing. Bad economy + likely real estate bubble seems like a bad time to try and make equity in my opinion.

    • @cavmanier yes location can make a huge difference.

What Girls Said 4

  • Because renting is basically paying off someone else's mortgage. Most people would rather begin paying my own house off rather than waste away tens of thousands on rent, that in the end will provide no assets. But that being said, if you are the kind of person who moves constantly, like myself, renting is really the smartest option.

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  • it's a good investment. you could always rent it out if you get bored.

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  • I know, just rent forever! Stress free

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  • Because by the time you want that family you will realise it sucks paying someone else's mortgage and living in a place you have no security in. Family cost a a lot of money, starting one and buying a house at the same time often isn't an option for many. The earlier you get some property the earlier you will pay it off and have less stress during retirement. It's a smart move if you can do it.

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What Guys Said 11

  • its about investing. of course this presumes that the market stays firm or improves so that they can get a return on their investment.

    generally speaking buying a home at a good price (which now is a good time to do) is a good investment. in the end you can sell it and presuming it's appreciated in value you should see a return.

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  • I can't see why you WOULDN'T want to have a house in your name as early as possible assuming you have a good life time mortgage with regards to interest rates and terms. It's a slightly high up front cost for the safety and knowledge of knowing that each successive payment period will be lower than the previous one, and you're not under anyone's thumb if you're fiscally responsible.

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    • Because I feel like houses are for people who want to stay in that location for the long haul. I am 25, I am not sure if I want to stay in my location. I could end up moving to Florida to explore my options or California, if a better job comes up. I wouldn't have that option if I had a house right now... I would be trapped, locked in for awhile.

      A lot of young people don't stay at their jobs long... they are always constantly looking for better opportunities before settling down. You can't search for better opportunities in other states when you are locked down.

  • they probably want to start that investment earlier in life, granted they have a decent financial situation to legitimately begin the process.

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  • For stability I suppose. I would want to purchase a house as soon as possible too. The reason being that my family never owned one when I was growing up and it was CONSTANT moving literally every 1-2 years, never being settled and comfortable. I hate transition and lack of consistency, frankly it is precisely why I hate the single lifestyle lived by folks such as yourself (no offense) who are in no rush whatsoever to get married or really begin their lives, since to me it is just more transition which I hate.

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    • " I would want to purchase a house as soon as possible too. The reason being that my family never owned one when I was growing up and it was CONSTANT moving literally every 1-2 years, never being settled and comfortable."

      I totally see your point :). For me... I I basically lived in a house all of my life. I barely remember the apartment or the condo my parents lived in.

      "I hate transition and lack of consistency, frankly it is precisely why I hate the single lifestyle lived by folks such as yourself (no offense) who are in no rush whatsoever to get married or really begin their lives"

      Being in a relationship or getting a house doesn't really mean anything in regards to really beginning your life". Having a stable career, having financial stability, a great group of friends, travelling and partaking in new experiences... that's a life worth living.

  • The issue is equity. If you pay rent, you don't get anything from it. As you pay a mortgage you get a percentage of ownership. Rent on the other hand has no long term investment, and as prices of real estate and interest is going up, if you can afford a home then it's wise to do it.

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  • Real estate is a great investment. Renting is basically throwing your money away. You dont get any return.

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  • A lot of what I see is fear of interest rates going back up. They want to lock in a good rate now for 30 years than risk paying much more later. Plus housing prices are rebounding. If one can pull it off, it's probably the best time to buy a home in many years.

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  • The downside to ownership is the lack of liquidity. It's a huge anchor. If you have no plan to move or upgrade, great. If you do in the short to medium term, rent starts to look much better.

    Unlike what some seem to think, there are big costs related to buying and selling houses.

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  • Interest rates are relatively low right now so people feel it's a good time to buy. They don't have the money to buy a home, but if they have a mortgage with a low interest rate the dream seems manageable even though they will pay twice the value of the home in interest over the term of the loan not to mention the exorbitant insurance extortion. It's there money, let them spend it how they want and do your own thing.

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  • I rather own something, rather than just renting. Then you have something to show for all the money you spend. And there is no way I could get all my cars and tools in an apartment.

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  • Better than paying rent and you end up with something that is yours not paying someone else's school tax

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