The prospect of being house poor isn’t just a cliche, it’s a reality many people are coming face to face with. In the past, increasing property values have bailed everyone out, but if that’s no longer in the picture, a more conservative approach is the order of the day. The key is buying beneath your means.

Good other variables to consider Kevin. Repairs & maintenance are the things people under estimate the most. Thnx
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Yes you’re soo right. Our economy is in such a fragile state right now. It’d be very foolish to jump into a mortgage that is too “tight” (e.g. both of us are stretching our budget in order to own). You never know if layoffs might happen…! I am holding off on buying anything too expensive to build my cushion (to offset the dead equity).
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One more major factor that we considered is safety. In apartment dwelling, one must trust everyone else in one’s building not to make fatal mistakes: smoking in bed, manufacturing drugs, etc. We lived in one apartment where I served as a manager. The owner and I had to clean up after a resident’s suicide attempt. As we worked, I realized that the building used gas for stoves–the suicide could have tried that method, which might have led to a catastrophic explosion! Once we moved into our own house, I slept much easier, knowing that any accidents were ours alone–we were no longer at the mercy of other people’s judgment.

Gillian – I agree with you on a retired person, as long as the house is owned free and clear. For a lot of retirees, carrying a mortgage might make retirement impossible.

And if you are a retired person then buying a home is best option for you.