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I recently received a question from Jessie, who pays $1,400 a month for an apartment by the ocean. He asked if it was a good time to buy a home.Verify your mortgage eligibility (Dec 4th, 2021)
I would ask him, “What’s your plan? Are you going to rent forever?” A rent of $1,400 a month is not a bad deal, but you’re missing that home equity. Homeowners have 44 times greater net worth than renters because of homeownership.
“It comes down to whether you’re stable and making enough money”
If you’re looking at $600,000 and prices go up 5% per year, that’s $30,000 a year you’d build in equity. You’d pay more than $1,000 down in principle, so in effect, you’re saving that amount each month. In exchange for building this wealth over time, you’re going to be paying more than $1,400 a month.
It comes down to whether you’re stable and making enough money. It sounds like you are, so it’s really about how much you like oceanside, and are you planning to stay in that apartment for long? If you’re uncertain, then maybe it’s not a good time to buy.
I’d love to answer more of your questions; just email them to me. You can also give me a call if you’re looking to buy, sell, or want to speak to me directly.Show me today's rates (Dec 4th, 2021)