Mortgage Broker Explains Why He Refuses To Buy His Own Home
Sometimes, renting is actually the better option.
fizkes | Shutterstock One of the main financial goals of many Americans is to buy their own home. Yet, according to a Bankrate analysis, "Americans must earn at least $100,000 annually to afford a median-priced home in 22 states," making this a challenging goal for many, especially young people, to accomplish.
Don't worry if you can't afford your dream home just yet, though.
A mortgage broker shared why he refuses to buy his own home.
Despite the common rhetoric that buying a home is best, mortgage broker Paul Leara chooses to rent an apartment for a variety of reasons.
For one, "it's impossible to find a good value house for less than $450,000 in a good area with low crime that you can build equity and have future money to spend," he explained.
As a renter, Leara also doesn't have to worry about maintenance and repairs like homeowners do.
"I'm saving a ton of money on lawn maintenance, on cleaning, on a bunch of roofing repairs, on anything else that might go wrong, on insurance, on taxes," he shared. "It's easy for me to pull up to my apartment and not have to worry about the gutter leaking or the washing machine not working."
He further noted that when something inevitably breaks, he simply calls the maintenance line instead of finding and paying for a plumber or other repair service.
Leara said the main reason he hasn't purchased a home is because 'it's just not the right time.'
“It’s not like I'm against buying a house,” he clarified. “I wanna own my own house one day. It's just not the right time for me and it's not the right time for most Americans under 40 and that's just a simple fact.”
While home ownership can be a good long-term strategy for building equity, Leara pointed out that it's not always worth it. According to him, the cost of maintaining a house often outweighs any equity, resulting in a "net negative."
“I’d rather not mess with all of that as a single man who doesn't need a house now,” he continued. “I think that's where most Americans are today, is that they don't see the point.”
That's not to say he'll never buy a house — it's a goal of Leara's in the future. However, he is not rushing that goal.
When it comes to homeownership, you must do what is best for you.
While Leara is a single man who doesn't need a home yet, that is not everyone's reality. Some young people have children who they want to grow up in a home they own. Others are caring for elderly parents and would prefer to do so in a house with more space.
DavideAngelini | Shutterstock
Ultimately you must evaluate your reasons for buying a home and acknowledge the pros and cons. Take a look at your finances and conclude if homeownership is feasible or necessary at the moment. Don't buy a house just because people have told you it is better than renting.
As Leara concluded, "There's nothing wrong with renting if that's what's better for you."
Sahlah Syeda is a writer for YourTango who covers entertainment, news, and human interest topics.