Yahoo Finance I Regret Buying a House — Why I Would’ve Saved Money If I’d Rented Longer
Many young professionals today feel pressure to stop “throwing away money on rent” and become homeowners as soon as possible. The reality, however, is that homeownership brings with it increased financial burdens and restrictions that renters often fail to adequately consider.
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GOBankingRates spoke with 33-year-old Sarah, who deeply regrets rushing into buying her first home last year. Still in the first year of her 30-year mortgage, Sarah details how unexpected maintenance costs, rising interest rates, lack of flexibility, and the overall “house poor” feeling led to an extreme case of homeowner’s remorse.
The Cost of Settling Down Too Soon
When Sarah bought her first home last year in the Chicago suburbs, she thought she was making a smart investment in her future.
“All of my friends were buying houses, and I just felt like it was time for me to stop renting and put down roots,” she shared.
But just a year into homeownership, Sarah is filled with regret over her decision to buy — for several different reasons.
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‘It Seemed Like the Right Move’
Like many first-time buyers, Sarah rushed into purchasing a home without fully considering all the additional costs involved.
“My real estate agent told me not to worry about the high interest rates and that I could always refinance later. The mortgage broker I was working with made everything seem so simple,” she recalled. “It seemed like the right move … all of my money would be going towards owning something rather than just paying rent every month.”
What Sarah didn’t account for were expenses like closing costs, repairs, higher utility bills, and homeowners insurance premiums.
“As soon as I moved into the house, things started breaking. The A/C unit went out the first month, and then I had plumbing issues a few months later. I’ve easily spent over $5,000 in repairs and maintenance in my first year of owning this home,” she said.
On top of unexpected repairs, Sarah is also now responsible for mowing the lawn, shoveling snow, cleaning gutters — chores that were handled by her landlord when she rented.
Sticker Shock Sets In
On top of high monthly costs, Sarah has also been blindsided by maintenance expenses, homeowners insurance premiums, and other unforeseen costs of homeownership.
“I super regret locking myself into a 30-year mortgage with massive monthly payments at such a young age,” she said.
In just the first year, Sarah estimates she has spent over $10,000 more than she budgeted for. This extreme financial burden has led to serious doubts that she made the right choice buying a home.
“Now, I cringe every time I see mortgage rates go up, knowing my friends who are still renting can easily move or downgrade apartments. I’m stuck in this house I can barely afford.”
Looking back, Sarah said she underestimated both the responsibility and inflexibility of owning property long-term.
“When things break now, it’s on me to fix them. As a renter, maintenance issues were my landlord’s problem. And I definitely took for granted being able to move somewhere new every year or two without any hassle,” she explained. “Owning this home already feels more restrictive than freeing.”
Advice for Renters Considering Buying
So what advice does Sarah have for renters thinking about taking the homebuying leap?
“Rent longer than you think you need to!” she shared. “I thought I was being smart buying a house at 33, but I clearly wasn’t financially or mentally ready for the commitment.”
Yancy Forsythe, a real estate advisor from Missouri Valley Homes, echoed Sarah’s advice. “Spend time thoroughly evaluating your financial readiness for homeownership. Consider all the additional expenses involved beyond just the mortgage payment,” he said.
Forsythe also suggests renters build a sizeable emergency fund before purchasing. “From one homeowner to another, there will always be unexpected expenses. Always have a financial cushion when it comes to owning a home.”
For Sarah, she wishes she had heeded warnings from her parents and close friends to give homeownership a bit more time.
“I was in such a rush to stop ‘throwing my money away on rent,’ but really, renting gave me so much more flexibility. I’m now house poor for a property that, frankly, I don’t even see myself wanting to live in long-term.”
Her biggest piece of advice? “Rent as long as you can stand it! Homeownership might seem like goals, but the financial commitment is not.”
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This article originally appeared on GOBankingRates.com: I Regret Buying a House — Why I Would’ve Saved Money If I’d Rented Longer
