Why Buying A House Is A Bad Idea
Buy A House, I Should Do That... Right?
Don’t buy a house over $200,000. I mean you can buy it, but you will be wasting your money. Use the 5% rule. This rule explains that you will blow 5% of the value of your house each year and never get that money back. This takes into account taxes, insurance, repairs and so on. So if you buy a $500,000 house you would lose $25,000 a year by owning that house. In many cases it is cheaper for you to rent an apartment than it is to buy a house. By cheaper, I mean you lose less money renting. For example, buying a $500,000 house would waste just as much money each year as renting a $2,000 per month apartment. Now people are going to point out that a house is an investment and that someday you will have that house paid off and it will all be worth it. That is not really the case. The 5% rule is money that is spent and never coming back. You would have to also pay the mortgage on top of that 5%. Houses are a money pit if you go crazy and buy too big. Don’t even get me started on utility bills!
