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House Regrets: Do Millennials Regret Buying A House?

If buying a house is the American dream, why is buyer remorse common when buying a house?

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Forge Your Wealth is meant for education and entertainment and should not be used for financial advice.

I have read a recent survey made by Bankrate that states 63% of millennials regret buying their house. This is more than the average 44% total of the US population that regrets buying their house.

Does that mean that buying a house is a mistake? Not really, looking deeper into the survey, you can see that the regrets are not necessarily from the lack of benefits in buying the house as much as a lack of planning.

Source from Bankrate

Maintenance – 18%

Since you are buying, you are now responsible for maintenance of the property. Remember, maintenance costs an average of $6,000 annually. Renting or living with other people have made people unaware of these maintenance costs. If you want to buy, you should budget for a mortgage30% less than what you would for rent. As for previous damage, the best advice is to get a home inspection, determine if the price is right for the repairs you will have to make.

House Is Too Small – 12%

I know some people are saying, “So what? I/We can manage.” You may say that now, but what if you get married and/or start to have kids? Will you have enough space? Also will you have to make any adjustments to your property? My brother is having a second child, to create a bedroom though, he had to put in a window. Legally the room must have a window so the matter was all but completely out of his hands. You want to have room to grow, one way or another.

In A Bad Place – 8%

Is there a non-offensive way to say this? I will try a less offensive way. Did you just choose a house online just like you would something off eBay? There is next to no excuse to end up with a house in a place you would not desire.

First, you should definitely see the house you buy. Second, you should drive around the neighborhood during multiple times, both during the day and at night. You should see how the area looks during the day just to determine if the environment is good. At night, you should see if it is safe. Make sure to check during rush hour, for all you know, the street you live on could be clogged with traffic during that time.

Think It’s Not A Good Investment – 7%

Check out my previous post. Houses can be liabilities, and are not the investments they used to be. Do not buy a house expecting it to make you rich.

Too High Of A Mortgage

You have almost full control on how much mortgage you have. You can choose which house you can afford. Then you can put down almost as much of a down payment as you want to minimize the mortgage. Hey, you technically don’t even need a mortgage.

One of the greatest regrets I hear about mortgage is that they have PMI to pay for. This can be avoided by putting at least 20% down.

Mortgage Rate Is Not Optimal

This makes me afraid that people of my generation are buying houses too soon. Having a credit score under 760 will give you a less than stellar mortgage rate by adding more interest to your rate. It is important to get your credit score higher to buy a better home cheaper. It is better to spend a year or two improving your credit before buying.

House Is Too Big

This may sound picky, but having too big of a house can be a problem too. A house that is too large requires higher expenses from taxes to lawn care.

Final Thoughts

Every single common reason anyone regrets buying their house stems from lack of planning, not on the act itself. Buying a house should take at least one month to plan for. Much thought must be made before buying, it is a long-term commitment. Take in some advice from experts and read some books before buying.

Having even the most basic plan to buy your house will help you along the way to forge your wealth.

Author: Papa Foxtrot

Most of my life I was careful with money and learned where I should invest it. I was very lucky to have parents who taught me financial literacy when I was young. Unfortunately, I am very lucky because many people lack the financial literacy I know. The purpose of Forge Your Wealth is to teach people who are just starting out in life how to obtain their wealth or anyone who just realized they may need to learn more to handle their finances. I currently have a PhD in biochemistry, just started a job in industry (will not disclose where exactly for personal and professional reasons) and am currently married to the love of my life. I am one of the lucky few people in America who graduated with no student debts, my wife was not. Over the series of a little over 3 years we paid for our wedding with no debt and paid off her federal student loans.

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