Is now the time to buy a home? I won’t be Andrea if I am not completely honest with you about this question. The answer to this is subjective. As a millenial myself, we get a lot of flack of not buying homes or buying homes BUT you don’t know what other people’s coinage look like. Every millenial is NOT in debt up to their neck nor do they need to go live with their parents to save for a down payment.
I will say the best answer is to do what’s best for you. Homeownership is not for everyone. In fact, even as a Realtor, I’ve told a few buyers that it may be best that they rent a little longer. This is normally the case when people’s expectations are higher than their budget especially after seeing what’s available in their budget.
For myself, I think of homeownership as a wealth builder. It’s an easy way to build your wealth and not think too hard about it. For instance, your home makes money as you sleep. It just happens to be the place that you raise your family, entertain family and friends, and sleep. It isn’t a liquid asset but an investment nonetheless. No matter the market, people will forever need somewhere to lay their heads. You can even use it to build your retirement plan as well with rentals. I met a guy last year who funded his whole retirement through rental properties. He decided to sell them all last year. The townhome he was selling was $170,000. Mind you he had 17 properties. Let’s do math here: If he had 17 properties and let’s just say all of them sold for $170,000, that’s 2.89 million dollars in gross profits. Now think about the rent he collected throughout the years. Did I mention he still worked a 9-5 as well? Trust me….you don’t get to make true wealth by just working a 9-5. I am not a financial planner but I am sure they will tell you that you need your eggs in more than one basket.
Other misconceptions I commonly here is “such and such” ended up retiring in their 30s because they didn’t buy a home. That is so great. I want to retire by 45 myself but homeownership is included in my portfolio to do so. What those type of stories don’t tell you is that “such and such” probably had no student loan debt and a six-figure job.
Figure out what your financial picture and plan is. We are not our parents or grandparents generation. No one typically lives in their home for the whole 30 year mortgage life cycle. The average homeowner lives in their home for 4-7 years. My best advice to give is to buy a home that can easily be resold. In DFW, I would say a home that is at least 1500 square foot, 3 bedrooms, 2 bathrooms, and a 2 car garage. Don’t live for your now when buying. Think about your life for the next 5 years and the person who buys your home. Think about how long you plan on staying in the home as well. If you plan to leave your area in the next year or two, then homebuying may not be for you right now.
It’s okay but the biggest answer is it will be your choice and what you can afford. In my honest opinion, the best answer is to weigh your options and not what anyone else has to say to you. Is it cheaper to own than rent? In some areas yes. In DFW, the rent is just as high as the mortgage. The only difference is that you get tax breaks from the mortgage and the rent is just gone.