Are you wanting to buy your first home, but seeing the prices of housings has you thinking of waiting?
In this blog, we are going to show you why it is a good idea to buy now then wait.
With house prices rising many would-be home buyers are asking, should I buy now or wait until 2023? The problem is even experts have trouble predicting the housing market. Many people said the housing market was going to cool down in 2021, and as we all know it didn’t.
Risk of Waiting
Waiting for prices to fall leaves you in the risk of increasing mortgage rates, which we know today mortgage rates are still low.
If you buy a house today for $800,000 with 20% down and a 30 year mortgage – your monthly payments will be $2,928 and $96,259 will be paid on your principal over a 5 year term
Let’s say that the same house is purchased at $760,000 because of a cooler market, but the interest rate increased by 1% to 3.69% your monthly payment would be $3,097, and you would have only paid $81,607.
In other words, by paying $40,000 more with a lower interest rate, you are saving money on your monthly payment and paying your mortgage off faster.
Cost of Rent
Another thing to consider is the price of renting. The price of renting has increased, the average renter pays about $1500 a month for rent, and prices are constantly increasing, the only thing is, you are paying someone else’s mortgage.
Mortgage as a Savings
Think of a mortgage as a savings account. Paying a mortgage forces you to save, which builds wealth. After 1 year you could make $100,000 depending on the area. Take some of that money out of the equity and use it to invest into another property.
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Now that you know why you should buy now rather than wait you may also be interested in learning about the ins and outs of the offer process.
In this blog, you will learn what you need to know about the offer process.
If you are considering buying a house but not sure if this is the right time, book an appointment with us and we can go over your options.
