Is Homeownership Right for You? Where Do You See Yourself in Five Years?
Owning a home is a dream for many, but it also comes with responsibility. Mortgage payments, property taxes, insurance, and upkeep all require financial discipline and long-term commitment. The truth is, homeownership isn’t for everyone—and that’s okay. But it’s worth asking yourself: where do you see yourself in five years if you decide to keep renting?
The Responsibilities of Owning a Home
When you buy a home, you’re not just paying for shelter—you’re investing in an asset. But with that investment comes responsibility:
Mortgage Payments – Consistent and predictable if you choose a fixed-rate loan.
Taxes & Insurance – Extra monthly costs that need to be budgeted for.
Maintenance & Repairs – From routine fixes to unexpected expenses, these are on you.
Financial Readiness – Lenders look for job stability, decent credit, and cash reserves.
If you’re not quite ready for these obligations, renting can feel like the safer option. But let’s look at where that choice may lead over time.
Renting Today vs. Renting in Five Years
Renting provides flexibility, but rent rarely stays the same. Even with modest increases, your payments add up.
Imagine your rent is $1,800 per month today:
With just a 2% annual increase, in five years your rent would climb to about $1,988 per month.
Over that five-year period, you’ll have paid nearly $112,000 in rent—with no ownership or equity to show for it.
On the other hand, buying a home with a fixed-rate mortgage keeps your principal and interest steady, protecting you from rising rents. At the same time, you’d be building equity and potentially benefiting from home appreciation.
Where Do You Want to Be in Five Years?
Five years will pass quickly. Ask yourself:
Do I want to still be renting, paying more each year, and owning nothing?
Or do I want to be building equity in a home of my own, creating a foundation for future wealth?
Homeownership isn’t for everyone right now, and timing matters. But creating a plan—improving credit, saving for closing costs, and preparing for the responsibilities—can put you in a much different place in the years ahead.
✅ Takeaway: Renting offers flexibility, but homeownership builds stability and wealth. Even with a modest 2% rent increase each year, the costs add up. The real question is: where do you want to be in five years?
If you don't have any money for a down payment and/or closing costs, it's time to start saving and investing for your future! You can start a SoFi account which is an investment website by clicking here: