New cars depreciate around 20% after the first year then continue depreciating by 10% every year after that. A home? Expect it to go up in value by about 4% year after year. Currently, the appreciation rate is a whopping 14.5%! Translation? Buying a home is always the better investment.

The average U.S. car payment is $577. No doubt this type of monthly payment will tie up a good chunk of your budget. This could slow down (or stop altogether) your ability to save for a down payment.

If you purchase a car first, there’s a good chance the real estate market could shift by the time you’re ready to buy a home. Interest rates may be higher, and it may no longer be a buyer’s market.

If you have a car payment and miss just one, it could damage your credit score and hurt your chances of qualifying for a loan. After all, none of us knows the future.

One more thing:

What will benefit you most 5 years from now? Driving around a 5-year-old car or resting your head each night in a home you planned for, saved for, and now call your very own?