What people don't consider when buying a house

I can afford the mortgage payment, but I'd be screwed if I needed to spend several thousand dollars to repair something if I bought a house. I am also in my mid 20s and want to remain mobile if I take another job etc. People that say that don't know what they're talking about. I know a few people that bought a house around 25 and moved 2 years later and don't realize they lost money even though they sold the house for more than they bought it for.

I think location matters (ie the rental market in your area) and more importantly, are you talking about renting an apartment or a house. Take DFW for example where my wife and I purchased a house, then sold, and are now renting (a house) due to temporary job situation. Most rentals don't include refrigerator or washer and dryer, you gotta buy or bring those with you. The rental price is anywhere from $600-800 more than the monthly payment would be if you bought the exact same house and it doesn't include water, utilities, yard work. In 6-8 years you would be much further behind someone who purchased a house in DFW if you yourself rented one. Not having a family and pets and being able to rent a 1br apartment certainly makes your thought process spot on IMO.

I guess the thing that I hear, that hasn't ever applied to me, is that you can somehow save more money renting. We pay more per month on housing while renting than we did as home owners. There is no way my family would save money by renting.

All that being said, as a physician I don't have to worry much about down payment in TX since those special lending programs will finance 100% of the purchase without PMI. So that makes my opinion and situation a little unique and not applicable to many potential home buyers.

Betting on appreciation greater than inflation is not a guaranteed move. It can work, it obviously has for you, but won't be the case for everyone.

OP, You have to consider the initial cash outlay for a downpayment (might be one or two or five years of rent) and everything that goes along with that. Then consider only a small portion of your mortgage will be going towards build equity in the beginning. There are plenty of calculators online available. Usually you need to stay ~5 years to break even. Aside from mortgage, insurance, taxes, theres yard maintenance, repairs, any utilities your landlord pays, etc.

Then you move, get a new job, your new wife doesn't like your pad, etc.

shite I'm talking myself out of buying a house

I'll jump in the thread here... I'm late 20's. didnt want to keep renting apartments and I live in a college town so a 1 bedroom is $1,000 bucks a month minimum.

Decided this is where I want to be so I pulled the trigger and bought a 3 bedroom condo. Payment is around $1700 when you take into account Mortgage, HOA, electricity.

As to Emergency problems... in March the compressor went out in my AC unit... $1300 to fix it.

I rent my place out during football season, did it 2 weeks last year and 1 this year to make some extra cash and to pay for my vacations for the year.

I realize my situation is different than most here OP, but I wanted to let you in on my thought process

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I am also in my mid 20s and want to remain mobile if I take another job etc

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I have gotten two promotions and a very large salary increase due to the fact that I was willing (and able) to relocate (twice) while in my 20s. Renting afforded me this opportunity. Just something to keep in mind.

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I'm young and it seems like I get this common question of when are you buying a house? How throwing away money on rent isn't gaining any equity. While I understand this fact, I look at houses and realize that there is no way to afford something without living in the hood. I was just thinking about this scenario. Say you rent 6-8 years saving up for a solid downpayment. You are renting during this time approximately the amount that you would be paying for your mortgage if you put no money down. Who actually is the fool here? I'm wondering if the amount of interest that you pay back to the bank over the course of time and the amount of money spent in upkeep and maintenance, would that exceed the money wasted in renting?

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It depends on goals/expectations. There is no right answer. Its why they make vanilla, and chocolate.

As others have said you are better on appreciation outpacing inflation, coupled with the fact the down payment is equity in the property. While first few years amortization is large % of mortage, money is going towards the principal. On newer construction materials are much superior/efficient/cost effective the maintenance is not the devil it once was.

If you are looking for flexibility/shorter term commitments rent is a great option. Once you've dug your heels into a community and intend to settle/raise family, hoe ownership is usually a better investment.

To lease a house in my neighborhood is about $500 more than mortgage per month.

No, I'm not OT rich and yes I am moving as soon as possible.

I was 26 when I purchased my first house. I told myself I needed to commit to the area for 5 years. I wish I would have waited a couple of years... only because after I got married and had kids, my needs changed. Had I waited another year or two... I would have bought in a different subdivision, a larger house, in a better school district.

My guess is most of the people asking when you are buying... are not from your generation. What they consider wasting your money on rent... is really buying flexibility. Most rent's don't skyrocket from one year to the next... and as long as you are a good tenant, most landlords are quite happy to have you stay.

The interest deduction is overhyped and will be more so if tax reform actually happens.

I would suggest as soon as you are ready to put down roots... you do so and buy a house. But don't do it until you are ready to put down roots. Young people these days are putting down roots at a later age than a generation or two ago, which also contributes to the comments you are getting.

To answer your last paragraph, the concern is that if you are spending all your money on rent you will never have enough to buy a house. Reality is with first time programs, seller incentives, etc... you don't need a ton of money to buy a home. And if you are renting for less than you can afford... you should be able to save. Get a roommate, etc.

Figure 1% per year for proper upkeep.

So on a $300000 home that is $3000 per year.

Also figure about $100 per 1000 square feet for utilities.
Example: 2500 square foot house in south in August is at least $250 to cool.

I have a house, but I don't care for home ownership. I like to play golf when I am off so I have a maid and a yard person.

It is ok, but if someone offered me a decent price I would pack up and move. I'm not attached to it except for my 30x50 athletic court with NBA gorilla goal and pickleball.

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promptly . . . two years later

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Eh . . .