Buying a house in South Asian countries, especially in Nepal is the symbol of prestige and stability of the family. The person will buy a house with their savings or through home loan if they landed in a stable job. Buying a house indicates success in a middle class family of Nepal. For many middle-class families, owning a home is more than just an asset. In fact, it is an emotional milestone of stability, respect, and achievement.
This blog breaks down why buying a house too soon can backfire financially, especially for middle-class earners who are just getting started.
Real Stories – When the Dream Turned into Debt
Ravi's Sad Choice
Ravi, a software engineer in Kathmandu, got a great job offer abroad. But he couldn’t take it because he couldn’t sell his house without losing a lot of money.
Priya and Arun's Emergency Trouble
Priya and Arun used all their savings to fix a water pipe problem in their house. Later, when their child got sick, they had no money left and had to take a high-interest loan.
Sita's Tough Situation
Sita bought her first flat at 25. But after paying EMIs, maintenance, and other bills, she had no money left each month and lived paycheck to paycheck.
Is Buying a House a Good Idea Today?
For many people, buying a house feels like a big step in life. It’s seen as a sign of success. But sadly, many first-time buyers soon realize they don’t have enough money left after buying. They feel stuck and stressed. All their future income goes on paying monthly installments of loan and ended up paying these routine payments throughout their active employment period.
What First-Time Buyers Forget to Think About?
Most people only think about the down payment and monthly loan (EMI). But there are many hidden costs: repairs, taxes, insurance, and more. Also, putting all your savings into one house means you lose the chance to use that money for other things.
Why Buying a House Feels Good but Can Be Risky?
People Love to “Own” – But It’s Not Always Smart
Everyone respects people who own a house. It feels good emotionally. But that happy feeling can hide the fact that you may not be financially ready.
Family and Society Pressure
In many families, there’s pressure to buy early. Parents say, “Don’t waste money on rent.” Relatives and friends support your decision. But they don’t warn you about the future stress and money problems.
Renting vs Buying: Which Makes You Richer?
Renting gives you freedom. Buying a home ties you down. In many cases, if you rent and invest the extra money, you might grow your money faster than if you had bought a house too soon.
The Hidden Costs of Buying a Home
It’s Not Just the Loan (EMI)
You also have to pay:
- Property tax
- Home insurance
- Regular repairs
- Sudden problems (like water leaks or electricity issues)
What You Miss by Locking Your Money in a House?
That down payment could be used for:
- Investing in mutual funds
- Starting a small business
- Learning new skills to earn more
Once the money goes into a house, it’s stuck. It’s not easy to sell the house quickly if you need money.
Are You Really Ready to Buy a Home?
Buying a house is not just about paying EMI every month. It means:
- Less flexibility
- Fewer job or travel options
- Stress of being stuck in one place
Simple Tips Before You Buy Your First House
Things You Should Do First:
- Save enough money for 6 months of living expenses.
- Pay off all high-interest loans (like credit cards).
- Make sure your job and income are stable.
Should You Rent Instead? Ask Yourself These Questions:
- Will I live in the same city for 5 or more years?
- After the down payment, will I still have enough savings?
- Am I okay with fewer financial options?
Pro Tip: Use tools like Bankrate or NerdWallet to compare renting and buying.
Useful Free Tools
- NerdWallet Rent vs. Buy Calculator
- Bankrate Mortgage Calculator
- SmartAsset Home Budget Tool
Conclusion – Buy Now or Wait?
What You Must Remember
- Buying a house is about money, not pressure.
- Don’t rush just because society says it’s time.
- Renting is not a waste of money but it gives you time to grow.
Plan Well Before You Buy
Please ask the following questions to yuorself before taking the decision:
- Can you handle the costs?
- Are you okay with staying in one place?
- Will you still have money for other goals?
Is This Your Dream or Someone Else’s?
Before you make such a big choice, ask yourself honestly:
"Am I buying this house because I want to? Or because I feel I have to?" Buying a home can be a good thing—but only when you are financially and emotionally prepared.
Bottom Line
Buying a house is completely the decision of the individual. They should take decision based on their income and financial status and the need.