Many financial independence viewpoints caution against the cost and burden of owning a home, as well as the social pressure to buy at any cost or ‘be left behind’.
However, I believe that owning your residence has emotional benefits beyond treating a house as a financial instrument.
I have fond memories of the house I grew up in as a kid. I still go back to that house and it greets and welcomes me as if I never left. Everybody, no matter their age needs a feeling of security. For me, the family home provides that, however tangible.
Next, a home is a tangible asset that you can see, touch and consume. In our crisis by the minute financial news reporting, it provides a stability and security that does not fluctuate by the day.
As a first leg of their financial plan, I would advise my kids to look to buy the most modest home they can bear to live in, and try hard to pay it off. The earlier they have a paid off residence, the sooner they can move on to tackling the next range of life’s challenges.
If they buy the home early, it is also likely they will delay lifestyle creep as their income advances.