Was reading the very well written novel Still Life With Husband by Lauren Fox and one of the telling moment in the young couple’s relationship is concerning buying a house.
Here’s an excerpt…
“Housing prices are on the rise, and interest rates are going up, and I was just doing some calculations, and if we want to Buy…” (these days Kevin says the word “buy” with a portent, a heft that clearly means he’s not talking about shoes) “…if we want to Buy in Deer Park or Lakewood, our salaries would have to increase by twelve percent this year, and I don’t know about yours, but mine’s not about to. Emily,” he says in a panic, barely stopping for breath, “that means, a house we can afford today will be beyond our means six months from now! If we don’t get on the ball here, we’re going to be priced right out of our first-choice suburbs!”
You see Emily isn’t ready to buy a house, at all. Kevin, her husband, is. And he gets himself in a panic thinking that if they don’t buy now, they might never buy. This puts stress on the relationship, assisting in its downward spiral.
I wish I could say that this is purely a piece of fiction. It isn’t. I know many couples in the same predicament (especially on the west coast). They may not be mentally ready to buy a home (or other large purchases/investments), they may not even be financially ready, but they feel the pressure to buy. They don’t want to “miss the boat.” And it causes real conflict in relationships and within themselves.
When I feel that way (and don’t we all at some point in our investing lives?), I know it’s my emotions talking (panic is pure emotion), not my reason. I try to take a moment to step back, cool down, before taking any action.