1. For example, I know a lot of people here on the island, who buy 3-4 bedroom houses, even though they are retired couples, on the premise that "the grandchildren" will come to visit. They pay $100,000 extra on the premise that maybe once a year they can re-enact a Normal Rockwell moment. And guess what? It rarely, if ever, happens. Emotional Thinking!
2. Still others buy more home that they need, to impress others. They want a "look at me" house to impress the folks back in the old country, or their friends or neighbors, or to get acceptance from their parents (cut to the chase there - you never get that, so don't bother looking for it!).
3. Others buy huge houses, convinced that they are getting a bigger tax deduction or making a great investment, based on emotional mantras ("buy as much house as you can afford!") rather than rational ones ("buy a calculator, asshole - and learn how to use it!").
4. People refuse to sell and move when it makes sense. A lady sits on her porch in Flint Michigan, wondering "where all the jobs went" and refuses to move, because "this is my home." Idiot. A person is offered huge amounts of money for their home during the housing boom, but refuses to sell, convinced they will be "priced out of the market!" if they do, and besides, who rents anymore?
1. It is OK to rent. No, really. Owning a house is a never-ending series of chores - mowing lawns, cleaning gutters, and the like. And the more house you own, the more work there is. You can pay people to do this (which is what you do when you "own" a condo) but that just means you are spending more money. Maybe renters don't make out in the long run, but then again, they have far fewer expenses, and often pay less in rent than you do in a mortgage.
2. Buy a Calculator - Learn to Use It: If it is cheaper to rent than it is to buy (taking into account ALL the expenses of home ownership and deducting possible tax deductions) then rent. Why pay more for possible headaches and also the risk of losing your shirt? If it costs more to buy than to rent, chances are, the market is overheated. Very few people sit down and do this simple calculation before buying a home. Most only look at the monthly mortgage payment and try to figure what they can 'afford'.
3. Do Not Become Emotionally Attached to Material Things: Even people who consider themselves to value people more than things often allow themselves to be swallowed up in emotional thinking about an old house. "This old house has so many memories for me!" they say. But the house doesn't have memories - you do. Better to move on, when the time is right, than to get all weepy about sheet rock and vinyl windows. And by the way - who promotes this emotional thinking about homes? You guessed it! The MEDIA! Every other movie and TeeVee show, it seems, has some woman weeping about how she loves her home and doesn't want to move. Poor Normative Cues!.