11 Reasons Why some People Don’t Want to Buy a Home

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I’ve recently been reading an interesting book called “Choose Yourself,” which – among other concepts – talks about the author’s belief that not all people should buy into the rationale that everyone needs to own a home.

While I love the stability and comfort of my home and living in a neighborhood for years where folks are familiar with one another, I found it interesting to entertain a viewpoint that goes against the common wisdom that claims everyone who is renting is throwing away their money when they could be building equity by buying a home.

In that spirit, here are 11 things to think about concerning why some people don’t want to buy a home:

11 Reasons Why some People Don’t Want to Buy a Home

REASON #1: THEY DON’T HAVE A DOWN PAYMENT

Certain loans come with no down payment requirements for qualified buyers, but others do – and seeing as though the healthiest interest rates are generally given to home buyers than can afford to put 20% of the purchase price down, having no down payment money can be a big reason some people don’t want to buy a home.

REASON #2: THEIR BAD CREDIT EXPOSES THEM TO INTEREST RATES THAT ARE TOO HIGH

Even though people with bad credit – like FICO scores that fall below 620 – are able to potentially find places to loan them money, that money might come with a seriously high interest rate that would make it more beneficial to wait on the home purchase.

It might be smarter to try and fix your credit score and get a better loan later.

REASON #3: TOO MUCH DEBT

Too much debt might mean your debt ratio is too high to get a loan, especially if your monthly bills are greater than 50% of your gross monthly income. In that instance, paying down debt might be the best focus for the time being.

REASON #4: YOUR JOB ISN’T CERTAIN

If you’re not sure you’ll be employed in the near future, it might be best to hold off on buying a home, else wise prioritizing buying food may take precedence over paying your mortgage in the event of a job loss.

REASON #5: RENTING AN APARTMENT COSTS LESS

Let’s face it: This is the main reason that most folks who graduate from college go directly into apartment renting instead of home buying. It’s simply cheaper in most cases to rent an apartment than pay a monthly mortgage.

REASON #6: YOU MOVE AROUND A LOT

If you have wanderlust or the type of job that necessitates you moving around from city to city pretty frequently, then home buying might not be your best option.
People buy homes to live in them for the long haul, generally, and to build equity. That can be hard if you are buying a home one minute and then trying to offload it the next minute.

REASON #7: YOU DON’T KNOW WHERE YOUR RELATIONSHIP IS GOING

It’s one thing to enter into a home-owning situation with a stable spouse with established jobs. It’s quite another to try and buy a house with a willy-nilly boyfriend-of-the-month or a group of gal pals who aren’t very responsible. Don’t enter into life-changing contracts with someone who might cause a foreclosure situation to negatively affect your credit.

REASON #8: THE REAL ESTATE HOUSING BUST

Before the house market collapsed, it was common wisdom to suggest that buying a home meant you were making the best possible investment decision. These days, that might not be the end-all be-all rationale, especially for folks who entered into dangerousARM loan agreements and found the mortgage payments skyrocketing.

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REASON #9: YOU’RE NEVER AT HOME

If you won’t really spend the time at home enjoying the house, it makes sense not to necessarily want to drop a ton of money on something that’s of no use to you.
In that case, an apartment or condo might suffice. With the prevalence of people willing to rent out their spaces via Internet sites offering those services, this could be an option. But make sure to stay safe when undertaking such a venture.

REASON #10: DON’T BUY JUST BECAUSE YOUR FRIEND BOUGHT A HOME

If you feel in your gut that it’s not the right time to buy a home, there’s probably a good reason not to buy one. Don’t cave to the pressure to keep up with your friends who’ve purchased homes. You’re not a loser because you don’t own a home.

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REASON #11: THE THOUGHT PROCESS OF HOME BUYING IS CHANGING…

The times, they are a-changing, Bob Dylan sang, and it is surely true. After World War 2, it was a great benefit to own a home because the vets were returning from the war and wanted to settle down.

All these decades later, our financial markets are plenty different than those days. And while there are still a plethora of benefits to home ownership, one shouldn’t feel pressured into buying a home based on antiquated ideals.

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11 Reasons Why some People Don’t Want to Buy a Home
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