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When my friend Sam opted to buy a home alone, a lot of people thought she was getting in over her head financially. Even though she has a good job, she’s single, and it’s hard to manage a mortgage loan on one income.
But Sam lived with her parents for many years after college, and that allowed her to build up a nice amount of cash in her savings account for a down payment. While she couldn’t afford to buy a home outright, she borrowed minimally to finance one, and also bought a smaller house that she thought would require little maintenance.
But after owning her home for a few years, Sam had had enough. And so she decided to take advantage of the red-hot housing market a couple of years ago and sell her home when she could get a great price for it. Here’s what primarily drove her to sell.
1. She was tired of paying for maintenance and repairs
Sam bought a small home on a pretty small lot. In spite of that, she found that she was constantly having to dip into her savings to cover the cost of upkeep and repairs.
Bob Villa says to budget 1% to 4% of your home’s value for annual upkeep. So if you own a $300,000 home, it would mean budgeting $4,000 to $12,000 annually for maintenance. But it’s hard to find similar guidance for repairs, and that’s something Sam struggled with financially.
2. She was tired of having to spend the time on maintenance and repairs
Sam is pretty handy, so she did a lot of home maintenance and repairs herself to save money because, well, she could. But even so, she grew tired of having to spend her weekends on things like yard cleanouts and painting her deck. She works a demanding job (which is partly how she was able to afford a home on her own, without a partner) and didn’t want to spend her limited downtime focusing on home projects.
Going back to renting was a smart move
Although Sam was convinced that she wanted to be a homeowner, after a few years of doing it, she realized that it just wasn’t for her. And now that she’s renting, she’s much happier.
Not only does she not have to deal with maintenance and repairs, but she also has an easier time managing her finances. The rent check she gives her landlord monthly covers all of her housing costs. She no longer has to raid her savings or stress every time a repair pops up.
Owning a home can be a smart move financially, and it can be a rewarding thing. But it’s not right for everyone. And if it’s not the best idea for you, know that there’s absolutely no shame in being a renter. While you won’t get a chance to build equity in a place of your own, you’ll get to enjoy the benefit of predictable monthly housing costs. And that alone is a reason to live in a home that somebody else owns.
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