The fact of the matter is that EVERYONE is in the housing market as everyone needs a place to live.
Let’s Set The Scene: You have been renting, for a while, and maybe feeling some pressure or desire to own your first home. But you have never been in the real estate market and you are bombarded with the media telling you how hard it is to buy in this market. You are a really smart person so you have been doing some research and deciding whether it is time to buy (go you!) but you still are on the fence. Let’s dive into that research, let’s sort through the noise, let’s break it down and move you off the fence.
Here’s Why You Are Ready To Buy
You Are Ready to Establish Roots
Renting is so temporary. Sure, you can maybe sign a lease for over 1 year but not very often. So every year you may have to move which means you have to find a new grocery store, coffee shop, dog park or Happy Hour spot. When you are fed up with that and ready to be in one place to develop roots and relationships you are ready to consider buying.
You Are Ready To Have A Built In Savings Account
Each day you wake up and have breakfast and head off to work, while you are renting, you are spending money. By living your life, while renting, you are no inherently saving on your housing and you are not financially saving as much as you could be. When you are ready to wake up, eat breakfast and head off to work all while building equity (savings) you are ready to buy. Ready to have to spend zero effort saving money by paying your mortgage and living life? Then you are ready to buy.
You Are Ready To Hedge Inflation
No, you are right you can’t actually change inflation. BUT, while you are renting, the inflation rate will continue to rise while your equity will stay at 0%. The fact is that home equity typically appreciates faster than national inflation. Ready to watch your home value increase at a higher rate than inflation helping you to offset that inflation increase? Then you are ready to buy.
You Are Ready To Make An Investment In Your Future
Sure, the interest rates are higher than last year or even earlier this year (2022). Every month when you pay your rent to your landlord the interest rate on that payment is 100%. When you sit and wait for interest rates to go down your landlord has locked in their interest rate and continues to profit of your “waiting game”. Ready to decrease your interest rate by 95% to an average interest rate of 5%. Then you are ready to buy.
Buying a home has so many benefits but it is also can feel like a huge important decision. Hopefully, as you weed through the fluff and the media you will see the overwhelming advantages of buying vs. renting. Sure, it is easier and may seem “cheaper” month to month to rent but unless you plan to move every year and don’t see a need for investing in your future than buying a home is for. You are ready.
Cheers,
