5 Reasons NOT to Buy That House

You've probably heard all about how buying is cheaper than renting. Combine that with low interest rates and a recovering housing market, and now might seem like the perfect time to take the plunge. But there are plenty of other factors to consider—buying isn’t for everyone, nor is it right for every stage of your life. Here are 5 reasons it may be smarter to wait just a little longer. You don’t have any down payment money saved up. Even though it’s possible to get a loan with as little as 3% money down (with a standard fixed-rate loan, or 3.5% with an FHA), it’s not always the best route, especially if you‘re doing so because money is tight. If you opt for a super-low down payment option, you’re going to have to pay for private mortgage insurance, or PMI, for the life of the loan (if you go FHA) or until you hit 20% (for standard loans). You don’t plan on sticking around for long. If you don’t think you’ll be in a house for at least five years, then buying isn’t likely to be worth it. For the first years of your mortgage, the majority of your payments are actually going to pay off interest, not your principle, so you won’t exactly have much to take with you when you sell and move on. Of course, there are some options for people who think they will hit at least that 5 year mark—adjustable rate mortgages, or ARMs, can usually give you a low interest rate for an introductory period of a few years before they adjust. Your rent isn’t that bad. Even though you hear all the time about rent hikes, there are actually some parts of the country where prices have remained quite low. Before you start shopping for a home, do your research. And the math. If your potential monthly mortgage payment ends up being significantly higher than your rent, then you may want to consider holding off for a little longer. You’re not settled in a career. If you’re still building your career—or if you haven’t exactly settled into one yet—then buying a home may be more hassle than it’s worth. Qualifying for a loan also generally requires a consistent job history, so be prepared to jump through some hoops anyway. You don’t think you can handle the upkeep. When you have a landlord, there are a lot of things you don’t have to worry about. Broken appliances, renovations, yard work—depending on what sort of property you’re planning to buy, the list can get pretty long. If you do a lot of traveling, or just aren't ready for the responsibility, now may not be the time to buy.