The article "I Bought a Condo and it Ruined My Life" was posted on Vice recently. It was shared on Facebook with the suggestion that "this is why millenials don't buy homes." Reading through this I couldn't help but notice the similarities of my own housing situation. I also purchased in 2006 at practically the same age, before the housing market crash. However, my outcome was extremely different than Mike Tunison. My house has been a wonderful financial investment.
A few red flags popped up while reading Mike's story. He mentions with his job he knew there would be a strong possibility he would move out of the area in the future. Real estate is the best investment over the long term, so if you want to move away in the near future, that is a really good reason NOT to buy to home.
He also said he felt pressure from his parents and went against his instincts. That was mistake number two. Always trust your gut. The last thing the was a red flag to me, but not specifically mentioned was what his monthly payment was versus his income. If Mike had been financially struggling a majority of this time, then my guess is he probably bought more home than he could afford. His decision to go freelance only exacerbated his financial problems.
I purchased my home in 2006 at the age of 25. The bank offered to loan me a much higher amount than I felt comfortable spending. I kept my price range conservative and bought a home that was a little dated. Friends moved in with me and helped pay the bills, making my expenses even cheaper. Over the years I have updated the home and added a bathroom. Flash forward to 2017 and my value is way up and I have a bunch of equity. I also have a house payment that is lower than what a small apartment would cost nowadays. My home gives me a consistent place to live along with financial and personal freedom.
Mike's conclusion that millenials aren't buying homes because they know real estate is a terrible investment is unfounded. His situation is the exception, not the norm. He helped create his own financial woes with poor decisions. Learn from Mike's mistake and take the advice in the article below. Ensure your home will be a good investment in your future.
5 Questions to Ask Yourself Before You Buy a Home
I agree with you, I noticed the multiple mistakes the author made in becoming a homeowner. I have just purchased a place but I'm in a good financial place, my fiance and I have steady work, and I'm prepared with a Plan B, C, and D if anything happens (knock on wood).
11/23/2021 08:43:13 am
Excellent article! Your post is essential today. Thanks for sharing, by the way.
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Great info on everything real estate.