It's an interesting time out there, a lot of you have questions as to if you should buy a house right now. I wanted to take some time to go over some important points on this topic:
We know that real estate is the only way to control a half a million dollar asset with little of your own money. I will discuss equity and appreciation of property and how that all works in another post.
No matter what is happening in the real estate market, you are going to need somewhere to live. You will always have a housing cost, whether your are paying your mortgage or your landlords. Historically, real estate always has small fluctuations short term but in the big picture, prices keep going up.
If you are currently renting, I suggest you buy to lock in your housing cost liability (just a fancy way of saying how much you pay each month for your housing.)
Rent price is based on supply and demand. With more people renting that means Demand is up, but supply is the same. Very simply, Rent costs will continue to increase.
All economic signs point to rental instability coming and rental prices rising. As the market changes with current pandemic & unemployment increasing, we will start seeing more foreclosures popping up. When this happens people still need somewhere to live, they will need to rent and this will drive rental demand and price up EVEN MORE.
When you own the house you live in, you have security and a steady mortgage amount that no one can increase against your will or kick you out on short notice.
Disclaimer! YOUR job stability situation is important. Don’t buy a house if you are not comfortable making your payments. If you have any uncertainty that you won’t be able to make your mortgage payments, continuing to rent might be your best option for now.
If you want to see if trading your rent payment for a mortgage payment is something you can do now, please send me a message.
If you want to learn more about my approach to homeownership, download my free eBook “Tenant to HomeOwner / HomeOwner to Investor” HERE