What are the five questions to ask to decide whether to buy a house?

Ramit SethiRamit Sethi: The No-BS Guide to Living a Rich Life

Should You Buy A House?

16 Sept 2022 · 1 min

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0:30

Ramit Sethi walks through five questions to answer before buying a house. You need yes to all of them: staying 10 years, keeping housing costs under 28% of income, having 20% down, accepting the house could lose value, and actually being excited about it. If you can't check all five boxes, don't buy.

Questions this video answers

(1) Will I live here for 10 years? (2) Is my total housing cost lower than 28%? (3) Have I saved 20% for a down payment? (4) Am I okay if the value of my house goes down? (5) Am I excited about buying?

Chapters

If you want to know whether you should buy a house, ask yourself these five questions. Will I live here for 10 years? Is my total housing cost lower than 28%? Have I saved 20% for a down payment? Am I okay if the value of my house goes down and am I excited about buying? If you can't check yes to all five of these, you probably shouldn't buy the house. But if you say yes to all these, you might be ready to buy a house.