Dave Ramsey says: Wait until the time is right for you to buy a house

Dear Dave,

Is it even worth it to buy a house these days? I’ve always been told buying a house is the adult thing to do and that it’s a great investment, but I can’t find anything decent and livable in my area for less than $350,000.

My wife and I are debt-free, and we’re expecting our first baby in January. I was hoping to get your advice.

– Craig

Dear Craig,

I can understand how things might feel a little hopeless in your current situation. You’re probably feeling the weight of the responsibility a new life brings to the picture. Things are getting real really fast, aren’t they? Believe me, I get it.

The truth is you may not be ready to buy a house today. And that’s OK. Having a new baby on the horizon doesn’t mean you have to run out and buy a home. That little boy or girl isn’t going to know the difference between a house and an apartment for a long time. Right now, giving your child a safe, loving environment is the most important thing.

Now, looking down the road, is owning a house worth it? Yes. But it’s not worth doing it at the wrong time or in a stupid way. You first need to make sure the income is there.

Then, you need an emergency fund of three to six months of expenses in place along with a strong down payment. So, what if you don’t buy a home for another two or three years? Home buying should always be done with patience and wisdom.

There are two or three things that make buying a home a great long-term investment versus renting your whole life:

• Rents go up every year. If you lock in a good, fixed-rate mortgage, that payment will stay the same.
• The value of your home will increase. When you rent, you don’t own your residence, and you won’t benefit from the value of it going up.
• Our study of 10,000 millionaires showed that most say two things were integral parts of their ability to build wealth: Good retirement investments and a paid-off home.

A house is a great wealth-building tool, and it can also stabilize the biggest line item in your budget — housing.

God bless you guys, Craig!
— Dave

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