I don’t believe in overpaying for anything—including housing. Yeah, I know: It’s the “American Dream” to own a home. But as so many people discovered after the 2008 financial crisis, it can also be a nightmare. The Dow has risen roughly 170% since the 2009 post-crisis low; housing, meanwhile, has largely sputtered and isn’t anywhere near its housing-bubble highs.
Also, I’d be wary of buying a house if all your disposable income will go to paying down a mortgage. Take my dad, for instance. He wasn’t a Wall Street guy; he was an ironworker and bartender—but he had common sense. We lived in an apartment in the Bronx till we could afford a home in Westchester. He didn’t need a financial adviser to tell him that.
Charles Gasparino is a Senior Correspondent at Fox Business Network and a columnist for Men’s Fitness. Follow him on Twitter.