Why homeownership may not be for everyone

In her upcoming book, “Financially Lit!: The Modern Latina’s Guide to Level Up Your Dinero & Become Financially Poderosa,” author Jannese Torres explains how she became the first woman in her family to earn a college degree, build a career and achieve what she considered to be marks of success.

However, in her quest for the American dream, she realized that she did not know what to do with her financial success. She also realized that some milestones, like homeownership, are often not so much accomplishments as new challenges.

“It’s just important that people don’t feel this pressure to buy a house because you’re a certain age or you’ve reached a certain stage in life,” said Torres, a Latino money expert who hosts the podcast “Yo Quiero Dinero.” and an entrepreneurship coach who helps clients pursue financial independence.

CNBC spoke with Torres in early April about what compelled her to write her new book, how she overcame “financial survivor’s guilt” and why pursuing the American dream can become a nightmare for some.

(This interview has been edited and condensed for clarity).

Ana Teresa Solá: What pushed you to write this book?

Jannese Torres: When I was doing the market research for the book, one of the things I did was look at what the competitive market was like, or if there was a reason why this book should exist.

I have not found a single book specifically marketed to the Latina community or Latinos in general, who are the majority minority in this country.

I wanted to write the book that I needed to graduate from high school and that could have saved me from making a lot of financial mistakes because I hadn’t learned anything about money. The more I talk to people through the podcast and through my social media platforms, the more this is a very common feeling. We are told to go to school, get a job and earn money, but the conversation ends there. What do we actually do with it?

ATS: Like many younger generations of Latinos in the United States, you have overcome many obstacles and achieved major goals. But you describe in the book that these steps also come with a feeling of guilt. Why is guilt linked to success?

JT: I call it “financial survivor’s guilt” because it’s one of those things we haven’t been prepared for. Our families told us to go pursue the American dream, but we weren’t given instructions on how to deal with the emotions that came with it. No one talks about the heartbreak that comes with growing up. No one talks about what it feels like to be on the other side of the struggle when so many of the people you love are still there and you feel powerless to help them all.

People will have to show some compassion and be able to feel these feelings. But don’t let them sabotage you. You will need to learn to respect certain boundaries and also be okay with the feeling of being alone on this island. When you are the first to do something, you will always feel uncomfortable. But if we don’t have examples of people who can do it, I think it will be much harder for people to believe that they can do it too.

ATS: Tell me about the chapter or that moment when you bought a house, but it wasn’t everything you thought it would be.

JT: Looking back on it now, I was a victim of the American dream. As a first generation child, my parents didn’t invest. The only thing we saw as an example of “success” was when family members bought a house: the sacrifices were worth it and that’s what you need to demonstrate for your success.

I definitely felt the pressure to keep up with the Joneses in that regard. I was 30 and watched friends buy a house, get married, do all those things that are on a successful adult’s life checklist. When I decided to buy the house, I was like, “Well, I have to do this too, because that’s just what everyone else is doing.”

I quickly realized that I had bought a house in a place I didn’t even want to live.

Looking back on it now, it’s like I was making all these decisions based on what others valued instead of asking myself what I actually value. The freedom of having that flexibility that renting offers is something I appreciate a lot more.

But I felt like I was falling victim to this narrative that says, “You’re wasting money if you rent and successful adults buy a house.” It took a lot of unlearning of these narratives and realizing that just because something works for one person doesn’t mean it’s universally applicable.

Homeownership is one of those things where more and more people are having to ask themselves if they have the personality, lifestyle or value system for it, or if they just want it. do because that’s what everyone tells you to do.

ATS: What would you say to someone who is financially secure or has met certain criteria to invest in property, but is still wary of it?

JT: One of the things that made me realize very quickly that I was in over my head was the fact that two weeks after moving into the house, I discovered that the basement was going to flood. The sewer line was blocked and that was not something we checked for during the inspection. I ended up having to spend $4,000 to replace the pipe in the basement two weeks after moving in. This pretty much used up what little money I had left after closing costs.

I ended up having to take out a 401(k) loan to pay for repairs and put things on credit cards. It’s important to understand that closing costs, fees and down payment are just the beginning.

There’s this narrative that if you get a mortgage you’ll pay the same amount forever and that’s why you should buy a house instead of renting. And I say, “Absolutely not.” Your property taxes and insurance will increase. You won’t be able to predict when things are going wrong in the house and when you’ll need to fix something.

You need to make sure you can afford the maintenance costs and things that will inevitably come with homeownership. And from a values ​​perspective, you really have to be honest with yourself: “Does this fit my lifestyle? Do I want to stay in this place for a decade or more? …Or do I want the flexibility to give my landlord 30 days notice and be able to move elsewhere? Are you in a job that feels like it’s something you want to do long term? Or do you want to develop your career? »

ATS: Do you think the American dream has changed?

JT: I really think that the American dream is being redefined because it has become inaccessible, especially to new generations. I think there was this path to “success” where you could go to school, buy a house with a regular job, and previous generations weren’t struggling with the level of student debt and the cost of living was not as high. There are factors at play that make the American dream obsolete or at least inaccessible to people.

We are seeing a kind of questioning and this change. I think the Great Recession was a big impetus for people to start asking questions. It seems like the American dream is more of an illusion for many people, and I’m curious to see where it goes.