# Am I an idiot for not buying a house? **URL:** \ **Category:** In My Humble Opinion\ **Created:** [September 13, 2003, 4:51pm UTC](https://boards.straightdope.com/t/am-i-an-idiot-for-not-buying-a-house/201404 "2003-09-13T16:51:20Z")\ **Posts on this page:** 1\ **Page:** 4
**Author:** ![Broomstick](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/broomstick/32/246_2.png) [@Broomstick](https://boards.straightdope.com/u/Broomstick)\ **Post date:** [September 17, 2003, 10:02am UTC](https://boards.straightdope.com/t/am-i-an-idiot-for-not-buying-a-house/201404/61 "2003-09-17T10:02:03Z")
> [@](#): > > \*Originally posted by SunTzu2U \* > Speaking from my experience. I bought my first home when I was 22. I paid it off in 5 years and refinanced it to purchase other rental property. I’m very proud of you, but when I was 22 I was eating in soup kitchens. Home ownership was impossible. I just didn’t have the funds. > [@](#): > > By owning permanent life insurance instead of renting term you will build up another financial asset which can be drawn against if needed for future opportunities. Unfortunately, some of us find buying life insurance extremely difficult. My husband, for instance, is frequently called “uninsurable” - according to actuarial charts he should have been dead 30 years ago. > [@](#): > > The responsibility of home ownership doesn’t end with just paying the taxes, insurance and upkeep. You need to have plans in place for life events which may come about. Like what was metioned above; > > By planning for such eventualities and having the proper tools in place (ie. disability insurance, life insurance, personal savings, health insurance, working on your marriage) people will be prepared when adversities are thrown their way. I agree that foresight and planning are key to surviving adversity, but no matter how wealthy or forethoughtful you are there is always the possibility of disaster. Get caught in a fire and burned over half or more of your body you can max out a medical policy and eat through a couple million easily. There are people who, due to current physical problems beyond their control, can not obtain disability or life insurance. There are people who get up, work hard every day, and still do not have health insurance in this country. While you yourself may be interested in preserving your marriage your spouse may not - and it only takes one to initiate a divorce. > [@](#): > > Problems result from failing to plan accordingly. An ounce of prevention will save tons of future grief. I have found in my current career that few people have made any kind of contingency plans for their financial future. They are too busy spending everything they make and going into debt to get things which will not help them in the future. My financial problems in my 20’s did not arise from debt - they came from having no start-up money for my adult life. I’ve never lived beyond my means, and the only debt I have is my car and truck (truck will be paid off shortly). I suspect that, through circumstances I had no control over, I did not reach the financial position you had at 22 until I was 32 - so I’m starting 10 years behind you in a sense. I do agree that folks racking up debt is a big, big problem. My husband and I work hard to avoid debt of any sort - and we’re considered very, very strange people. I run into that a lot when we look at real estate - “But you could afford twice what you said you were willing to pay! You’ve got a good job, you could do it!” Hey, I’m looking for a house to suit MY needs, not just to pad someone else’s commission. Being told I can spend up to 30% or more of my gross income on housing doesn’t cut it - I’d rather spend 20% because I can use that 10% to make a cushion against future upsets. I want _enough_ house, not a lavish palace. > [@](#): > > Make saving first priority by putting aside a percentage of all earnings (ie. 10% is a good start) and then learn to live on what you have left over. That only works if you have 10% beyond what you need for food, clothing, and shelter. Unfortunately, not everyone is so well-off. I’ve been there. I worked my butt off to climb out of that hole. As I said, in my case it had nothing to do with debt load or living beyond my means, I just started with next to nothing, and for several years I was investing in a college education rather than real estate (but a college degree can pay big dividends, so I feel it was a smart move on my part) As most of us have said, everyone is different, you have to consider your own needs and the market you’re dealing with. However, despite being a long term renter, I’d have to say that real estate IS a good investment if you do a little research and invest wisely. [Previous page](https://boards.straightdope.com/t/am-i-an-idiot-for-not-buying-a-house/201404.md?page=3)