Internal changes
With these additional constraints comes stress: the pressure to continue earning and the late night what-ifs. A client of mine recently spent close to $10,000 replacing her sewer lateral; when it failed, all plumbing in the house stopped. Moreover the expenses require consistent payment and planning. The mortgage payment is paid monthly, whereas the property taxes are paid bi-annually. I divide my annual property taxes by 12 and set aside that amount each month. So ask yourself, are you ready to handle the stress and disciplined enough to see the process through?
External changes
Owning a home limits your freedom (see renting discussion). There is less money to do the things you enjoy. Today I travel less because it’s unaffordable to travel. As I work more, there is less time to relax.
Ask the hard questions
Ask yourself the hard questions because the answers will tell you if you are ready. Owning a home is a big responsibility. If you are ready, go for it; otherwise wait. Before you determine if you are ready or not, I suggest you ask the following: am I ready to grow for it? The challenges of home ownership don’t change. Delaying a home purchase simply delays the sacrifice. In most if not all circumstances, the sacrifice gets more difficult with time. Find out why in next week’s article.
Growing for it
Owning a home changes your lifestyle. Will you adapt? Let me share with you the personal growth that I experienced over the last year since I bought my first home:
- I am more disciplined with my finances (trial by fire)
- I am more disciplined with my personal time
- I entertain friends at home regularly (one of my new passions)
- I hike and enjoy the outdoors more often
- I am building a community in Palo Alto
Finally, consider the intangible benefit of owning your home. For me, I absolutely love waking up in my house. It is one of my greatest joys.
