Why I’m Not Buying A Home (Even Though I Can Afford One)

If I told my younger self that I still didn’t own a property, she’d probably freak out.

For the longest time, buying property was my number one goal. I educated myself on the nitty gritty and knew exactly what I wanted, with the means to do it. However, after a failed attempt I reassessed and realised that buying property was not a good financial decision for me, right now.

I live in Melbourne.

I think we can end the article here.

Just kidding! But, this is very much the case. Property prices in Melbourne are insane. A property that I could afford comfortably would be either a small apartment or a house at least 45 minutes away from the CBD. By “comfortably” I mean being able to afford a deposit which is at least 20% of the house price and monthly payments that are not more than 30% of my pay (after tax). This is very important to me.

For most of us, a house is the most expensive thing we will ever buy. It also is a commitment that spans decades. For such a large purchase, I don’t want to compromise and make a purchase that I am not 100% happy with just to have a property now.

I don’t want to be tied down…yet!

As a 20-something, I am kinda scared of responsibility.

A commitment that I need to honour for the next 30 years is a pretty big deal! It’s especially hard making that decision when I don’t know where I’ll be in the next 5, 10 years. What if I get a great job in a different country? What if I want to take time off work and travel the world? Can’t quite do that with mortgage repayments.

Investing in the stock market on the other hand provides me similar returns, but completely responsibility-free. Another major plus is I can sell my stocks at anytime and get my money in cash in a few days. It’s certainly a bit more of a process when selling a house.

I’m waiting to get 50% off

Okay, hear me out. I love the idea of being a strong, independent woman who bought real estate on her own in her 20s.

However, it makes much more financial sense to purchase a home with a partner. Not only do you instantly get 50% off your purchase but there is a backup income stream to pay the mortgage if you lose your job. You can purchase a better property in a nicer area and have less anxiety about shouldering all the responsibility of owning a home.

For these reasons I have decided to wait to purchase my first property, even though I have the financial means to do it now. This way I’ll be able to buy a property in an area that I love, won’t be burdened with paying a mortgage solo and will overall know what I want in life.