Buying, renting, and living with your parents – those are your options if you don’t count the military or prison I guess (although some might consider living at home with parents a prison, but that is for another blog post). It seems like an increasingly popular family discussion these days are the housing options (if you are lucky enough to have family that you can talk about such things). Parents are scared about their children taking on the responsibility of homeownership and a mortgage, rentals are getting a little harder to find and maybe, just maybe, renting grandma’s basement is not such a bad idea.
Looking at the economics, and only the economics, buying is simply still the best deal around as long as you buy within your means (which means you buy what you can afford to pay back) and buy “right.” So, the question is, “How do you buy right?”
The current housing market is full of sellers who have been trying to sell for a long time, hoping the market has turned upward for them only to find out that the offers are still few and far between – that is if the price is not right from the asking. In others words, there are still properties that are listed for sale at exactly the right price right now, and they sell quickly so you have to be ready.
Looking for a bargain is not just about offering a low price to see if they take it. Today’s market has more to do with knowing a good deal when you see one. With all the internet tools available, there really is no excuse not to do your homework and know what you’re doing instead of deferring to a real estate agent or anyone else.
Buying today will be the most significant life changing financial event for anyone who buys right and buys for the long term. Why? Because we are in the midst of the greatest market correction in history, the lowest interest rates, and the most inventory available to buy. It does not take a Harvard MBA or to know that buying right is buying right. The real question is, who will help you? How do you find help and how can you be sure those who are helping you are giving you the best advice? That’s where the consultation team here at Today’s Home Renovations come in and we are happy to sit down with you for a free consultation.
Renting? You’re basically paying someone else’s mortgage, but if you have no choice, you have no choice. But if you have to rent then make sure you are also doing everything you possibly can to get your credit, finances, and income in a position to help you buy as soon as possible. Remember, the rent you pay today is someone else’s mortgage payment and that payment includes interest AND principal. That means you are paying for someone else’s tax deduction and giving cash to someone else to help them build equity.
Waiting to buy is a recipe for paying more than you have to, but if you can’t buy, you can’t buy. When it is your time to buy, sit down with our team and we will help you understand the market paradigm when it shifts. In the meantime, find something that makes sense to you, be realistic, and buy within your means.