I think that yes a house can be a sensible asset as long as you are not buying too much house. The utility benefit can be great in terms of saving on potential rent (depending on where you choose to live). A mortgage is the minimum you’ll pay for accommodation, whereas rent is the maximum. But a sensible house in a good area may also appreciate in price (but its kind of irrelvent unless you plan to downsize in the future as you’ll always need somewhere to live). One of the biggest benefits comes from the peace of mind you get from not being evicted!
Generally if you plan to live in a home > 5 years then it’s a better investment to buy the home. Essentially there’s the costs of buying and selling a home and those are hard to recoup in only a couple of years. >5 you usually have good appreciation on your home prices.
I just purchased my first home at 24. It made sense when the cost of rent equaled the monthly obligation of owning a home. I know I am staying in the area for 5 or more years so I am happy with the risk. I also have the possibility of renting this home out when I eventually out grow it.
When you are debt free and have 3-6 months of emergency funds in the bank.
I think that yes a house can be a sensible asset as long as you are not buying too much house. The utility benefit can be great in terms of saving on potential rent (depending on where you choose to live). A mortgage is the minimum you’ll pay for accommodation, whereas rent is the maximum. But a sensible house in a good area may also appreciate in price (but its kind of irrelvent unless you plan to downsize in the future as you’ll always need somewhere to live). One of the biggest benefits comes from the peace of mind you get from not being evicted!
Generally if you plan to live in a home > 5 years then it’s a better investment to buy the home. Essentially there’s the costs of buying and selling a home and those are hard to recoup in only a couple of years. >5 you usually have good appreciation on your home prices.
When you can AFFORD it!
I just purchased my first home at 24. It made sense when the cost of rent equaled the monthly obligation of owning a home. I know I am staying in the area for 5 or more years so I am happy with the risk. I also have the possibility of renting this home out when I eventually out grow it.