‘We See A Lot Of Our Friends And Family Starting To Buy Homes’

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‘We See A Lot Of Our Friends And Family Starting To Buy Homes’

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Buying a home is a core part of living the American Dream. However, homeownership doesn’t guarantee that you have made it. Buying a home can create a host of new problems, and one Redditor wanted clarity.

A 32-year-old husband posted in the Middle Class Finance subreddit hoping to discover

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. The couple has two young kids and lives in an area with a very high cost of living.

“We see a lot of our friends and family starting to buy homes,” the husband stated.

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The couple’s friends and family have been moving to areas with lower living costs, but is that the right move for them? Redditors debated the value of buying a house vs. renting, but some of the top comments seemed to side with renting.

The

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post is filled with comments where people discuss buying vs. renting, but the top comment came from someone who told the husband not to compare himself with others. While avoiding comparisons is always a good idea, it’s especially true for big financial decisions like homeownership.

What’s good for the couple’s family and friends may not be good for them. Some people buy homes when they want to raise families. The couple has two children, but that doesn’t mean they have to stop renting. The children may like the area, and if it works for the couple’s finances, then they may want to stay put.

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, which provides access to a pool of short-term loans backed by residential real estate with just a $100 minimum.

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If the couple’s needs change in a significant way, then homeownership may be the proper route. However, the top commenter’s reply resonated with many in the community because it felt like the husband was looking at his family and friends when assessing if buying a home was worth it.

One of the biggest benefits of owning a home is that you can build equity with each monthly mortgage payment. You can eventually become debt-free and pay a lot less for your property than a lifelong renter.

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However, most people in the Middle Class Finance community shared the downsides of owning a home. When you buy a home, you are committed to one location, which offers a lot less flexibility. In addition, you become responsible for maintaining your home, and that comes with additional expenses and effort.

It’s much easier to move out of an apartment than it is to sell a home and buy another home. Renting is more convenient while owning a home allows you to build equity.

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One commenter took issue with the notion that renting is the equivalent of throwing money away.

“I’ll never understand people screaming here renting is throwing away money. Do they not realize it’s either index funds or home value appreciation? Except with index funds, I don’t have [to] waste time and stress dealing with broken toilets or fences,” the commenter stated.

While the rent payments can be going toward mortgage payments, you also don’t have to worry about a down payment. Instead of saving a lot of money for a down payment, renters can put the money into the stock market and watch their money compound.

Homeowners don’t have the same flexibility with a down payment. Their house can gain value over time, but it is riskier from an investment standpoint to put all of your money into a house instead of diversifying into an index fund.

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