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Most experts agree, if you have the means to buy now - you should! The reason? Waiting to buy has multiple cost:
Cost #1 - Rent is 100% interest
When you pay rent, it is similar to paying 100% interest. The money is going to someone else and you will never see it again.
When you own a home and pay down the balance of loan you're putting money into an asset that you own. As the loan balance gets lower the difference between your loan balance and the home value is your equity. When you go to sell the home someday, you will get the money that you invest back, unlike rent.
This is the reason that the average homeowner's net worth is 40xs greater than the net worth of the average renter.
Cost #2 - You're missing out on home value appreciation
Home values are predicted to continue to rise steadily over the next five years. In addition to paying down your loan balance, equity is also grown through your home value's increasing. Let's say you buy your home today for $400k and in 5 years you sell it for $650k, not only are you making back the money that you invested in over the last 5 years through paying the mortgage balance down, you're also making $250k just in home appreciation!
Cost #3 - You will likely be paying more for a home in the future
The person who buys the home from out prior scenario in 5 years for $650k is paying $250k more for than if they bought it today for $250k.
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michael s b
laura w
brian b
kenneth t
erica w
jamie t
richard u
elizabeth u
colette d