5 Reasons to Buy or Not To Buy a Home

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Real Estate

To BUY or NOT to BUY

5 Reasons for and against buying a home.

Most people dream of owning their own home someday. 

Remember, there can be significant financial obligations when you become a home owner.  For one, if you overspend, you can be reduced to being a house poor person, with not enough leftover to pay regular bills or work towards long-term financial goals.

Here are some guidelines on why you should and should not buy a home.

1. When you’re ready

Buying a home is probably one of the biggest decisions you’ll make in your life. So it makes sense to be financially prepared before you take the plunge.

Bear in mind that this decision is a long-term financial responsibility as you have to service the housing loan on a monthly basis.  

If you’re financially and emotionally ready, go for it. For some, owning a home is a milestone as it gives you a sense of security as well as a sense of personal accomplishment.

2. When you want to own equity

The satisfaction from owning a home comes from knowing that you now own equity. Instead of paying a monthly rental, you are paying towards your own home.

In the event you wish to sell the home, you are then able to recoup some of this money to put toward your next home or another big purchase.

Keep in mind that the housing market can be unpredictable, so there is no guarantee that your house will significantly increase in value. One good example is the Covid-19 pandemic. However, real estate is an appreciating asset in most cases.

If you are lucky enough to pay off your home, you can sell it and collect a large sum of money. You can then take that money and use it for your retirement or use the equity to help you move to a nicer home.

3. When you have a stable job

If you are reasonably secure and certain that you will stay in your current job, it is a good idea to put money down on a home.

Having a steady income will help you stick to your budget, pay your mortgage and spend within your means.

4. When you know house prices will rise over time

A house is one of the best investments you can make. Home prices in Malaysia are relatively stable, with the exception of crises like the current pandemic.

However, experts believe it will slowly pick up when everything normalizes. So if you buy a home now, you’ve put your capital in a safe investment where it is likely to appreciate.

Experts believe that house prices will pick up again when everything is back to normal.

5. When you crave stability in your life

Everyone gets to the point where they want stability in their lives. Owning your own home gives you a sense of neighborhood, schools and community and other amenities that you can call your own.


If your job involves you being transferred often or you yourself plan to be relocated, you’re better off renting rather than buying a new house each time you move.

The rule of thumb is to buy a home only if you plan on being in an area for at least five years. Owning a home also comes with its fair share of troubles. For example, if you lose your job, it can be tough to pay your mortgage or move for a new job.  Be sure you have at least a 6-8 month emergency fund in case of a crisis. 

Too Much Debt

If you are carrying large amounts of debt, you should not buy a home. You will struggle to pay your mortgage, and this could severely damage your credit and financial health.  No one want's to be house poor.


Becoming a home owner is a wonderful feeling and a big step to responsibility.  Make sure you speak to a qualified mortgage lender so they can help you understand the financial obligations and costs to owning your own home!  I bought my very first home when I was 24 years old.  It's a great accomplishment to own your own home and invest in your future.  

If I can help you with your home buying or selling needs, give me a call at 954-303-1082.  I look forward to working with you on your journey.  

Your South Florida Connection REALTOR, connecting you to your next property.  


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