“Ask Brianna” from NerdWallet is a Q&A column for 20-somethings, or anyone else starting out. I’m here to help you manage your money, find a job and pay off student loans – all the real-world stuff no one taught us how to do in college. Send your questions about postgrad life to askbrianna@nerdwallet.com.
Q: Paying rent every month feels like throwing money away. Should I keep renting or buy a house?
A: I used to want to buy a house so I could have my own garden. Despite my dismal track record for keeping plants alive, I wanted to be able to grow more fresh food than a few sad herbs on a fire escape. With my own house I could also try out all those crafty home renovation ideas I saw on HGTV, I thought, or hang art without having to spackle haphazardly at the end of my lease.
The jump from renting to owning is a huge financial step, not just a change in lifestyle. You’ll need a potentially hefty down payment, solid credit and a plan to live in the same place for long enough to make buying worth your time and money.
Three-quarters of renters ages 18 to 39 say owning a home is better than renting because it’s a solid investment and protects you from rent increases, according to the May 2014 Fannie Mae National Housing Survey , but that’s only true once you’re financially secure enough to buy. That means for me, a garden will have to wait. Here’s why.