You read some articles about it, and you’re afraid to purchase now; right? I respect that, but hold off on that decision until you have all the information. I’ve seen the articles too. Here’s my take.
I think it’s more propaganda and click bait. Yes, homeownership is an investment that comes with regular expenses and incidental ones, but there’s fearmongering and a play on the numbers in these articles. Rent can be cheaper than a mortgage rate if you’re only using 3 bedroom, 2 bath homes with garages, in certain zip codes in your owner data, vs a condo in the same zip. I don’t think any actual comparisons of apples to apples is going on here.
I also keep seeing posts about people who bought in 2020 with 2% or 3% interest rates being stuck. Oh, the jokes they make, while trying to get you to buy in the current market, with interest rates what they are. I’m guessing you should feel more fortunate? But the fact is that 2020 mortgage may have been modified or otherwise changed since they bought it, or they had an enormous downpayment and the mortgage could be $1300 by now; but if you rent that same property in this area, they’ll charge you $2500 minimum monthly. They are not stuck. You’re paying ALL their expenses and they get a profit too.
Let’s also consider that you need the same credit scores and three times the rent to even get into a rental. There are downpayment and closing costs on purchases, but there are also programs to minimize that cost. I don’t like it when people who aren’t that creative copy what they’ve heard about the market to get likes. I’ve heard “marry the house, date the rate” 1000 times, but if you don’t qualify for a refinance at the time, it won’t even matter. Agents generally want the sale today, and say whatever. I prefer educating/informing my clients, building lasting relationships and dealing in integrity.
I study this stuff because it’s my business. My specialty is customizing properties into forever/retirement homes. That’s not everybody’s story, so let’s just look for your NEXT home. The rate is what it is today, but there are ways around that, if you have the right agent for starters. I have ideas. Give me a call.
From the mind of Tonya D Floyd