This Could Be the Worst Reason to Buy a Home

You should do what's best for you -- not what other people think is best.

"You're throwing your money away."

"You need to buy a place of your own and stop renting."

Those are the things a friend of mine we'll call Matt (not his real name) used to hear on an almost weekly basis during the latter half of 2020 and most of 2021, when mortgage rates plunged and buying a home was a more appealing prospect.

Matt is a successful person in his mid-30s who owns his own small business. He's done well for himself financially and has more than enough money in savings to make a down payment on a modest home. But he likes renting and doesn't want to take on the financial burden of owning a home. So whenever people pressure him into buying, he has to go out of his way to insist that his current situation works just fine for him.

If you're being pressured into buying a home, it's important to not succumb. Otherwise, you could end up making a huge mistake.

Homeownership isn't for everyone

There's a reason my friend Matt likes being a renter. As a business owner, he works a lot. And he really doesn't have time to maintain a home and deal with things like repairs.

He also doesn't have the desire to increase his housing costs, which he feels will happen if he goes from renting to owning. He might spend less on a monthly mortgage payment than what he spends on rent. But when you throw in the cost of property taxes, homeowners insurance, maintenance, and repairs, it's easy to see how his total expenses could easily rise.

Plus, Matt's income is variable -- and it tends to fluctuate a lot. As such, he needs the stability of a predictable rent payment. A $2,000 home repair could end up being super stressful for him if it comes at a time when he's light on work or is weeks away from getting paid for a major project.

That's why Matt's plan is to continue to rent indefinitely. And whenever someone tries to pressure him into buying, he rightfully shuts them down with a "not interested."

Don't buy a home for the wrong reason

You may want to buy a home because you want to plant roots in a community, build equity in an asset that could gain value over time, and avoid having to follow a landlord's rules. Those are all perfectly valid reasons for becoming a homeowner.

But you shouldn't become a homeowner because people keep pressuring you into it. It's your money and financial freedom that's on the line, and if you feel that renting is a better option than owning, you should stick to being a renter.

It's easy for people to talk up the benefits of homeownership. But are those same people going to come by and help you mow the lawn during a busy week or pay for a plumber when your water heater malfunctions? Probably not.

So while the advice to stop renting and start owning may be well-intentioned, ultimately, the choice of whether to buy a home should be yours and yours alone. And you shouldn't let peer pressure factor into that decision in any way.