A Reddit user advised Indian H1B visa holders in the US not to buy a house right now. Many buy homes after a few years, especially when starting a family, because they believe renting is a waste of money. But, the user says that’s not true.
High interest rates mean early mortgage payments mostly go to the bank as interest, just like rent. It’s also money “lost”, the user says.
According to the Reddit user, owning a home often brings more stress: longer commutes, lifestyle upgrades and added expenses like furniture and repairs. People feel pressured to spend more and stay in cities just because they own property.
“You’ll upgrade to a comfortable SUV. You’ll enter West Elm furniture instead of IKEA. You’ll hire a landscaper instead of growing mint in a pot. You’ll hire contractors to remodel your bathroom so you can have a heated bidet and 2 person shower,” says the post.
The user calls the tech job market unstable and suspects that immigration policies can change, making job loss riskier if tied to a mortgage.
“Politics follows the same environment. Before you know it, you may lose your job, or the country could be become unfriendlier to H1bs. The stress from a mortgage will be intense. Your company could change its tune any day and you are just a resource,” the Reddit post says.
“It feels wrong to not “own”, but if you reframe it as paying for the privilege of flexibility and time, it seems a lot better to rent than own. And that is assuming that it’s actually more expensive to rent, which it’s usually not. Your kids will not care about the difference. And you will be happier,” the user adds.
While one social media user wondered if people with H1B visa bought houses, others clarified that Texas, Dallas and Charlotte have huge farms of houses completely occupied by H1B people Atlanta communities, Chicago suburbs and Bay area also have them.
Not everyone agrees
One of them did not agree with the original poster and argued that it would depend on the income..
“I am in Bay area and have at least 3-5 friends only from nVidia who had over $5M in cash and bought big ranch outside,” the user wrote.
A Reddit user warned that if H1B visa holders returned to India, they would become Non-Citizen Non-Residents (NCNR) in the US. In such cases, after a $60,000 limit, their US assets may face estate tax up to 40%.
This is an important point for H1B holders to keep in mind while planning their future and managing their savings, the user said.