I get the feeling that people who buy homes, have a terrible experience and then tell everyone they know that it is not worth it to own a home had some idealized notion of what it would be like. I read an article once from a guy who bought a house, had a hot water heater break (and maybe some other issues to deal with) and then had the value of the house drop during the 2008 economic collapse. He talked about how he and his wife couldn't wait to get rid of the house and go back to renting.
It seems as though he thought that he could just buy a house, wait a few years and then sell it and make money. I am sure this happens for some people but it is a very skewed view of home ownership. I think home ownership should be viewed more like having a small business. You have to plunk down a chunk of money to start the business (buy the house) then you have to work hard to grow and improve the business. That part is all the home improvement and maintenance that must be done.
If you have rented all your life you may be surprised to find that you have to clean out air duct filters regularly and take measures to make sure the pipes don't freeze in the winter among many other tasks. A house is a big complex thing and won't always give you a return on your investment. I love owning a home but I try to be honest with friends who are thinking about buying. Matt and I both spend huge chunks of our free time working on the house or working hard at our jobs to get money for our house. We don't eat out much, we hardly ever go on vacation and we scrimp and save so we can turn this house into what we want. Unless you are rich and can buy a pristine new home there will be sacrifices that need to be made.
Those stairs are going to cost about $2,000 to fix because it is beyond what Matt and I can safely do. That is a big chunk of change that we had slated for other house repairs. But that is another thing to understand about home ownership. Here is a list of things that I think people need to know about owning a home and some tips that will help you avoid heartache.
Buy less house than you can actually afford.
Everyone wants their first house to be their dream house with all the amenities. The truth is that most first time home buyers can't afford it. They figure out the maximum that their budget will allow and then find a house they love that is even more expensive. If you buy a house at the top of your budget then you are going to have a hard time saving money and when things do break they will be a much bigger deal. Plus the stress of a huge looming mortgage payment every month is not a fun thought. Suze Orman's book Young, Fabulous and Broke has good tips in regard to how much house you can afford. Great book for many reasons.
Save for the inevitable.
Whether you bought a fixer upper or a solid structure that needs no work you still need to save for a rainy day. During the inspection on our house three years ago the inspector said nothing about how poorly the porch was made. The point is to make sure you have at least some money in reserve for whatever gets thrown your way. This applies to more than just owning a home. Having money for when your car breaks down, the ac breaks or the dog gets sick will make you a million times happier than that cute blouse or custom couch.
What do I need now vs. in the future?
Right now our family consists of two adults, a cat and a dog. Will that change in the next year? Five years? Ten years? How long do you plan to live in the house? If just you and your cat need a house right now then why are you buying a three bedroom, two bath mansion with a big yard? If your kids are young can they share a room so you can buy a smaller house and save some money for when they really need their own space? Decide what you need for at least the next five years and worry about where the grand kids will sleep when they come to visit later (unless you actually have grand kids of course).
Pretty vs. Solid
If you have the choice between a house that has no foundation issues, good windows and a new roof versus a super cute house that is leaning off a hill and no insulation go for the one with good bones. Pretty is much easier and more fun to do than correcting the structural problems below.
Ask people you know about their experiences.
Matt and I are very lucky that both our parents and older siblings all own homes so we have no shortage of people to turn to for advise. Our parents in particular have bought and sold more houses than the average American and my parents have even build a few. Seek out the good and the bad stories so you know what you are getting into.
Neighborhood is key!
Our house is nestled in the little known neighborhood of Columbia City. Many Seattleites have no idea how nice this neighborhood is or how close it is to everything so that means it is one of the last places in the city that you can get a house for a decent price. It is by no means perfect but if we had gone a mile further south we could have gotten a bigger house but then would have been in the middle of gang territory.Learn about the neighborhoods that you could live in. Think about commuting distances, crime statistics and schools if you need to. A smaller or slightly funky house in a good neighborhood is better investment than a great house in an area where you can't walk down the street. This doesn't mean you have to be in the richest part of the city but think about what your lifestyle is, where you want to be and what areas might improve by the time you want to sell.
So that is a lot of writing.I hope it has been helpful and given you some things to think about. If you have any questions about home improvement or living in Seattle I would be happy to answer then. Thanks for reading.
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