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Buying a house is a big commitment of time, money and resources. We recommend service-members do a great deal of “independent” (from people without a vested interest in you signing on the bottom line) research before ever buying a house. Yes there may be a long waiting list for base housing, renting a house is a good alternative. And no, renting is not throwing your money away. Home ownership is expensive, in most every case more expensive versus renting. If buying a house is a want, which for most servicemembers it is, we recommend you re-evaluate your Values, Goals and Sacrifices and see a good financial consultant.
Do you know your State Laws and Statutes for homeowners who do a short-sale or their home goes into foreclosure? Do you understand what can happen in a “Recourse” State to a homeowner with a “Deficiency” balance that is owed?
We could go on all day offering reasons why service-members shouldn’t buy a house. We could mention the tens of thousands of service-members that had to PCS and now have a foreclosure or a bankruptcy after a short-sale deficiency balance owed, and now on their credit report. You know, the one’s that said it would never happen to them, that they are too smart because their relative is in the real estate business. We could talk about the thousands of savvy military-lifers and their family (with respect) who never bought a house and have loads of financial resources because of their financial wisdom. The wise service-members who lived in base housing for many years enjoying their benefits.
If you still want to buy a house then do it the right way. Complete our Home Buying Questionnaire that is attached to this section and see if you’re ready.
We recommend you establish and maintain your household finances based only on the income of the service-member. This will greatly improve your financial success and goal achievement.
Valid reasons for service-members to buy a house:
For service-members a single family brick and mortar dwellings should not be purchased as an investment. If you want to learn how to invest in real estate, take investment classes and learn about REITS.
Preparing for a house purchase:
Service-members are marketed aggressively by the housing industry. The entire realestate industry is based on commission; they only make money when they sell, and will tell you anything to make a sale. It is up to you to make the right decisions for you and your family. Financial stress can impact every part of a service-members life, from family, career, to being mission-ready. Be patient while you gain knowledge and information; make sure your choice is based on facts and not emotions.
TSP Payday - Millionaire
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