Home > 2014 > Mortgages

Am I Too Old to Buy a Home?

Advertiser Disclosure Comments 0 Comments

Like it or not, there are certain things in life that have an age limit. Joining the Army, playing professional football and being a runway model, for example. But what about buying a house?

Here’s this week’s reader question:

Should I purchase a home if I am over 45 years old? I have never owned a home and I’m thinking of purchasing a home as a first-time homebuyer. I think I might have waited too long. Please advise. – Patricia

The short answer to your question, Patricia, is no: You’re not too old to buy a home. I’m 58, and bought one for investment a couple of years ago. I’m also thinking about buying another one to live in, although I’m not sure I’ll do that anytime soon.

Homes are expensive and can be complicated to finance and difficult to keep up. But at the end of the day, they’re just another purchase, like a car, washing machine or anything else. Which raises the question: Why are you concerned you’re too old to own one?

I suspect it’s because you’ve never been down this road before and are afraid it may be too much to handle, especially as you approach your retirement years. Or perhaps because you’re afraid of having a mortgage during retirement.

Owning Can Be Awesome

I bought my first house at age 21, and with the exception of a few months in transition, have owned at least one ever since. Why? Let me count the ways.

1. It’s often cheaper than rent. I haven’t made a fortune owning homes, but I’ve certainly never sold one for less than I paid for it. Granted, after all the time, effort and money I’ve invested in fixing up my various homes, my returns may be less than stellar. But since I have to pay to live somewhere, I might as well use my housing money to build equity for myself rather than my landlord.

There are places where I couldn’t afford to own a home — Manhattan comes to mind — but if I can afford it, I’ll always buy. Even when I’m 90. After all, it’s the only investment you can live in, and after you shuffle off this mortal coil, those you leave behind can use it as well.

2. You call the shots. You only live once, so you might as well do it in a place you enjoy. Want a skylight or a hot tub? Put them in. Want to paint your kitchen red or add wood flooring in your bedroom? Other than your budget, there’s nothing stopping you.

3. It offers financial security. While nothing is certain other than death and taxes, something else comes pretty close: rising rents. When you own your home outright, there’s no more monthly expense. Even if you have a mortgage, as long as the rate is fixed, your payment will never rise.

4. There’s something for everyone. When I was younger, I was all about “sweat equity,” meaning increasing my home’s value by fixing it up myself. While I still swing the occasional hammer, these days I’m less inclined to do the work personally. But that’s OK, because there are housing options that require less work than a single-family home. I could own a townhouse, which could eliminate a lot of yardwork. I could own a condo, which requires less work of all kinds. I could buy something newer that doesn’t require as much maintenance.

Owning Has Drawbacks

Of course, there are two sides to every debate. Here’s a look at some potentially bad things about owning.

1. It’s not cheap. There’s no question that owning — at least in some cases — costs more than renting. Houses break, and when you’re an owner, you’ll be either doing the work yourself or paying someone else to do it — probably some of both. Also, while you can eliminate or at least maintain your monthly mortgage expense, you can’t control rising insurance, property taxes and other costs.

2. It ties you down. Because of the transaction costs of buying and selling homes, you shouldn’t even think about owning if you’re not staying put for at least five years.

3. It could go down in value. That’s not something I would have said prior to 2007, but, as millions of Americans have now experienced, owning something that’s worth less than you owe on it is an unpleasant experience.

4. You could have a mortgage in your retirement years. Depending on the type of loan and when she retires, Patricia could be faced with a mortgage at a time when it’s best to keep debt to a minimum. Of course, if she doesn’t buy, she’ll face rent during retirement. But it would still be best, if possible, to minimize the ongoing expense of a mortgage by paying it off while still working. This she may be able to do by taking out a 15-year loan, or taking out a 30-year loan and making extra payments on the principal.

5. It requires some education. Shopping for both a home and mortgage can be daunting. There’s a lot to know, from avoiding a money pit to negotiating for the best financing. Since lots of people do it, it’s obviously not rocket science, but it’s a lot more time-consuming than finding an apartment and signing a lease. Personally, I kind of enjoy the process, but I can certainly understand those who don’t.

This post originally appeared on Money Talks News.

More from Money Talks News:

 Image: Monkey Business

Comments on articles and responses to those comments are not provided or commissioned by a bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by a bank advertiser. It is not a bank advertiser's responsibility to ensure all posts and/or questions are answered.

Please note that our comments are moderated, so it may take a little time before you see them on the page. Thanks for your patience.

Certain credit cards and other financial products mentioned in this and other articles on Credit.com News & Advice may also be offered through Credit.com product pages, and Credit.com will be compensated if our users apply for and ultimately sign up for any of these cards or products. However, this relationship does not result in any preferential editorial treatment.

Hello, Reader!

Thanks for checking out Credit.com. We hope you find the site and the journalism we produce useful. We wanted to take some time to tell you a bit about ourselves.

Our People

The Credit.com editorial team is staffed by a team of editors and reporters, each with many years of financial reporting experience. We’ve worked for places like the New York Times, American Banker, Frontline, TheStreet.com, Business Insider, ABC News, NBC News, CNBC and many others. We also employ a few freelancers and more than 50 contributors (these are typically subject matter experts from the worlds of finance, academia, politics, business and elsewhere).

Our Reporting

We take great pains to ensure that the articles, video and graphics you see on Credit.com are thoroughly reported and fact-checked. Each story is read by two separate editors, and we adhere to the highest editorial standards. We’re not perfect, however, and if you see something that you think is wrong, please email us at editorial team [at] credit [dot] com,

The Credit.com editorial team is committed to providing our readers and viewers with sound, well-reported and understandable information designed to inform and empower. We won’t tell you what to do. We will, however, do our best to explain the consequences of various actions, thereby arming you with the information you need to make decisions that are in your best interests. We also write about things relating to money and finance we think are interesting and want to share.

In addition to appearing on Credit.com, our articles are syndicated to dozens of other news sites. We have more than 100 partners, including MSN, ABC News, CBS News, Yahoo, Marketwatch, Scripps, Money Magazine and many others. This network operates similarly to the Associated Press or Reuters, except we focus almost exclusively on issues relating to personal finance. These are not advertorial or paid placements, rather we provide these articles to our partners in most cases for free. These relationships create more awareness of Credit.com in general and they result in more traffic to us as well.

Our Business Model

Credit.com’s journalism is largely supported by an e-commerce business model. Rather than rely on revenue from display ad impressions, Credit.com maintains a financial marketplace separate from its editorial pages. When someone navigates to those pages, and applies for a credit card, for example, Credit.com will get paid what is essentially a finder’s fee if that person ends up getting the card. That doesn’t mean, however, that our editorial decisions are informed by the products available in our marketplace. The editorial team chooses what to write about and how to write about it independently of the decisions and priorities of the business side of the company. In fact, we maintain a strict and important firewall between the editorial and business departments. Our mission as journalists is to serve the reader, not the advertiser. In that sense, we are no different from any other news organization that is supported by ad revenue.

Visitors to Credit.com are also able to register for a free Credit.com account, which gives them access to a tool called The Credit Report Card. This tool provides users with two free credit scores and a breakdown of the information in their Experian credit report, updated twice monthly. Again, this tool is entirely free, and we mention that frequently in our articles, because we think that it’s a good thing for users to have access to data like this. Separate from its educational value, there is also a business angle to the Credit Report Card. Registered users can be matched with products and services for which they are most likely to qualify. In other words, if you register and you find that your credit is less than stellar, Credit.com won’t recommend a high-end platinum credit card that requires an excellent credit score You’d likely get rejected, and that’s no good for you or Credit.com. You’d be no closer to getting a product you need, there’d be a wasted inquiry on your credit report, and Credit.com wouldn’t get paid. These are essentially what are commonly referred to as "targeted ads" in the world of the Internet. Despite all of this, however, even if you never apply for any product, the Credit Report Card will remain free, and none of this will impact how the editorial team reports on credit and credit scores.

Our Owners

Credit.com is owned by Progrexion Holdings Inc. which is the owner and administrator of a number of business related to credit and credit repair, including CreditRepair.com, and eFolks. In addition, Progrexion also provides services to Lexington Law Firm as a third party provider. Despite being owned by Progrexion, it is not the role of the Credit.com editorial team to advocate the use of the company’s other services. In articles, reporters may mention credit repair as an option, for example, but we’ll also be sure to note the various alternatives to that service. Furthermore, you may see ads for credit repair services on Credit.com, but the editorial team isn’t responsible for the creation or implementation of those ads, anymore than reporters for the New York Times or Washington Post are responsible for the ads on their sites.

Your Stories

Lastly, much of what we do is informed by our own experiences as well as the experiences of our readers. We want to tell your stories if you’re interested in sharing them. Please email us at story ideas [at] credit [dot] com with ideas or visit us on Facebook or Twitter.

Thanks for stopping by.

- The Credit.com Editorial Team