There's so much discussion of the current housing bubble (or is it even a bubble?). As a home owner and business owner in San Francisco, an extremely expensive city, I have a lot of clients who teeter on the precipice ...fearing that if they buy, they'll be in over their heads but if they wait, they'll miss out and be permanently priced out of the housing market.
I answered this question for a Bloomberg newsletter recently and at the risk of sounding like a
broken record, I continue to iterate - home ownership isn't for everyone!
The best way to determine if you're cut out to be a home owner is to create a holistic financial plan that encompasses all of your goals (known and unknown) and make sure you can reach these financial goals if you buy a home.
You shouldn't have to compromise your retirement savings or resort to eating beans and rice to simply grasp a foothold in the housing market.
Furthermore, if you feel homeownership is a burden and you don't find joy in repair and maintenance...renting could be the best fit for you in the long run.
It's difficult to sort through all this on your own, working with a financial planner will help you get clarity and perspective before you dive into the housing market.