I Once Bought a House for This Terrible Reason

Owning a home isn't right for everyone at all stages of life, and there's no shame in renting. I'd argue that if someone insists you simply must buy a home, you have every right to laugh at them and say no way. The argument you'll hear most often is, "Renting is throwing money away!" It's not, though. It's really not. You're paying for a roof over your head, and keeping your costs lower than they would be if you bought a house.

As you may have guessed, I'm no stranger to being told that I'm less of an adult because I rent my home. I actually did buy a house once, and it was easily one of the worst mistakes I've ever made, right from the beginning -- because I bought it for a truly terrible reason.

I was tired of my apartment

At the time that I started looking for homes to buy, my now ex-spouse and I were living in an apartment complex that consisted of about a dozen large buildings, each with multiple apartments. We were on the third floor of our building, and our apartment itself was fine. It had enough space and the complex was only a few years old, so it was actually pretty decent (which hasn't been the case for some of the homes I've rented over the years).

But getting in and out required trudging up and down multiple flights of stairs (in any kind of weather), and there wasn't adequate parking for all tenants to be able to park at their own building. If I got home late, I would have to park many buildings away. And I was sick of listening to the people in the apartments next to mine.

I should have rented a house instead

With well-meaning family encouragement (and financial help), I ended up buying a house. Getting a mortgage was absolutely the wrong thing to do at this time. I was living paycheck to paycheck (despite earning more than I ever had in the preceding years, when I was a college student and then a graduate student), and I had no real savings. I also hadn't fully grasped the costs of homeownership, and got extremely lucky that nothing major went wrong with the home in the time I owned it. Getting out from under it (after I was laid off and went through a divorce about two years after buying) was a major hassle, and I'm glad I was able to convince my lender to put it up for a short sale, as that damaged my credit less than foreclosure would have.

Ultimately, I should have rented a house instead. My ex and I could have afforded a little more per month in housing costs, and for our budget, we likely could have found a nice home and signed a new lease, rather than buying. Worst-case scenario, we could have chosen a different apartment complex with more ample parking and fewer units per building. The point is, I had options that didn't involve committing to a mortgage.

I'm getting ready to buy again

It's been 13 years since I bought that first house, and I've spent the last eight months stashing cash in a high-yield savings account so I can try to buy again within the next year. I live in a different part of the country now (but still thankfully one with a low cost of living), and I'll be buying solo. And I'll be contending with much higher mortgage rates than when I bought in 2010.

Thankfully, I'm a lot wiser in the matters of homeownership now, and by making the following moves, I'm putting myself in the best possible position to become a successful homeowner (and not regret the purchase):

• Saving money: I'm hoping to make at least a 10% down payment on my future home. If I put 20% down, I'd be able to avoid paying for mortgage insurance, but I don't want to tie all my money up in the mortgage. I want some in my savings account so I can fix problems as they come up without going into debt.
• Improving my credit: I paid off a lot of debt in 2022, and my credit score is currently 825. That should ensure I get the lowest rate possible for a mortgage loan. I'll keep it that high by staying out of debt and selectively applying for credit.
• Using a good real estate agent: I have friends in this area, and I've already got the name of a good real estate agent to call when I've reached my savings goal. I hope to make that call before the end of 2023, and get the ball rolling.

After my short sale misadventure, I vowed I'd never own a home again. Clearly, I'm eating crow on that now. But I think my next attempt at homeownership will be more successful than the first -- especially because this time, I'll be buying because I truly want to own a house, and can deal with everything that goes with it.