Why I Think Buying Home is a Liability for New Immigrants

With sky-high interest rates and shrinking net Purchasing Power (PP), buying a house (as a first-timer) is becoming more of a liability in North America, the UK, or any other credit-driven society. This is particularly true for new immigrants.

For example in Canada, owning a home is often touted as being synonymous with success and stability. However, it is crucial to approach this milestone with a critical eye, as buying a new home can be a substantial financial liability, especially for newcomers.

Why I Believe Buying a House to Be a Liability.

1. Putting All Eggs (read lifetime savings) in a Single Basket

If one puts all their resources in a single basket, they have little-to-nothing left to plan for the future or use in any emergency.

In many cases, this is true when choosing to buy a home — It consumes one’s most financial resources while sinking them into debt and giving them a false sense of home ownership. (I admit, this is not true for EVERYONE and ALL, but for most people)

For example, to buy a house in Canada, one has to put 5%-20% of the price-of-house as a deposit — which roughly consumes all savings for first-time buyers. The remaining…