Should You Buy A House As A Student?
Maybe you’re tired of throwing away money on rent every month. Maybe you’re tired of moving every year when you need to find new roommates. But you’re still in school and you’re not sure if you’re ready to buy a house. Here’s the real facts on home ownership for students.
It’s a lot of responsibility
If you are the type of person who would rather call somebody when there’s a problem, then home ownership might not be for you. On the other hand, if you’re going to be living right near your uncle who’s a great handy-man, or your mom, who knows all about houses, then, you might consider buying a house.
When you own a home, you don’t necessarily need to do it all yourself. However, it will be cheaper to do it yourself, and sometimes you are going to want to at least try to fix problems. Other times are just times when you need to call a plumber. But you don’t want to have to pay a hundred dollars and then find out that the plumber fixed the problem with only a plunger.
Consider the payments
If you don’t have a steady income, chances are that you won’t be approved for a mortgage unless you are applying with somebody (a partner, a roommate, a parent) who has a steady income. If you don’t have a steady income, you are going to have to consider how you are going to make your mortgage and bill payments each month as well.
Some students buy houses close to campus and then they rent out rooms to other students. This can be an easy way to make your mortgage payments each month, and sometimes even to keep a bit left over for you. If you are going to rent out rooms in your house, you might want to make sure that there is phone and internet available in each of the rooms. You will also want to think about the way you will set up the finances. It could be easier to charge a flat rate than to figure out how you are going to split the utility bills each month. Will you share the internet? Will you share the phone? How will you sort out long distance? Some people wont’ want to share the phone because they have cell phones. Other people might want their own line into their room. It all depends on who you are planning on living with, but these are just some of the things that you will want to sort out before you start advertising having a room to rent.
The initial outlay
Buying a house is going to be more expensive than you think it will. You might want to paint rooms. You will have to buy household objects that you never thought you would need. (Does your basement need a dehumidifier? Do you need shoe racks from the front hall closet? Are appliances included?—These purchases will all add up to more than you had budgeted for in the first place.) Some places, such as Canada, require lawyers to complete paperwork for each and every house that is sold. This means that you will have to pay at least a thousand dollars for lawyers’ fees. You will also have to pay land transfer tax which could also amount to thousands of dollars. Sit down with an expert to discuss the real initial costs of buying a house, and make a good budget. Then you will be able to make an informed decision about your purchase and decide a good amount of money to set aside. It is better to overestimate these costs, because any leftover money you will be able to put down on your mortgage.
The time
Owning a house takes time: cutting the grass, keeping it clean, paying the bills. As a student, you might not have a lot of time. If you are already pressed for time, then think about how much busier you will be when you buy a house and one day the fridge breaks down.
Your choice
In the end, buying a house can be a great decision for students—or it can be a disaster. It depends on your financial goals, where you are financially now, and the type of person that you are.