This piece is part of my 2016–2026 archive migration. Some original formatting, content, and external links may be missing, changed, or not be optimized.
When is a good time to buy a house?
Recently, I wrote the article, “When Is Lifestyle Inflation Okay;” most people think it’s always okay, and for the extremely frugal, it’s never okay. However, there actually is a time when increasing your standard of living makes sense and won’t hurt you. Take a second to reflect on some things before you dive into buying a house…
When Is Lifestyle Inflation A Bad Idea?
The easiest way to tell you’re not ready to increase your lifestyle includes any of the following scenarios:
Your debt is growing.
You can’t afford your current lifestyle.
Your savings are not moving closer to your goals.
You need someone else to split your expenses to handle your current expense load.
When Is Lifestyle Inflation Okay?
The Markets Always Recover
Real estate is and always has been a long-term investment. If you’re looking to buy a home for the wrong reasons, you might experience a financial setback, but if you buy for the right reasons to build long-term wealth – affordably (i.e., not buying too much house), you will profit in the end.
Does it make sense to buy the dream home in your dream location, or does it make more sense to buy the pleasant home in a good location and build from there?
If thinking about the house purchase adds stress to your life, then it’s time to take a step back.
Continue Renting Vs. Buying
Many say renting is a complete waste of money, but there are times when you will save money if you continue renting versus buying a home and dealing with all of the expenses that come with owning a home.
You have two choices to make, you could continue renting and save the extra money towards a down payment for a house, or you could buy a home and start building equity that can lead to your next property. You can’t lose if you make a decision within your financial means. Either way, you will have to say goodbye to some cash, but it’s all about your long-term goals and determining which decision you should make.
This content is for informational purposes only — not professional advice. Consult a qualified professional before making any major decisions.