Is buying a house a dud deal?

On the weekend I spoke with two separate people - both about to sell their current home (after less than a year living there) and who may be making a loss on the deal.

I think sometimes we rush into buying a home. It's a huge status symbol. "They own their own home" is often used as an expression of someone who has 'made it'. I reckon that attitude is costing us. It lures people into buying when the probably shouldn't.

Adam Conover, from Adam Ruins Everything devotes an episode to housing. This snippet is on renting versus buying.

Later in the episode he also mentions the hidden costs buyers often forget or underestimate. He also covers the first rule of investment - diversification - not putting all your financial eggs in one basket.

One of the experts on the show suggests 3 things to ask before buying. Can I afford it? Do I have 20% deposit? Will I live here 10 years?

You can find Adam's sources on his site.
The full episode is on SBS for the next few weeks, or on youtube (lower quality).

Comments

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