Should you buy a home or rent?
The answer may surprise you.
Photo: Unsplash
Hello Financial Healers,
I have several clients asking me about purchasing a home. You know what I tell them? Wait and save.
According to recent data, typical mortgage payments are surmounting rental costs. Plus, with “phantom fees” like maintenance repairs and property taxes, it makes more sense to rent right now than buy.
Yes, there are still deals out there. One couple I know just secured their first home for a good price, but it requires many repairs. How much will they spend on restoration, and how much does that add to their monthly payments? It’s a reality that needs careful consideration.
Photo: Chartr
Renting has never looked better
According to housing analysts, “[prices are] at or near ‘peak unaffordability.’” Pundits predict that rents will either skyrocket soon to catch up with housing, or home prices are about to drop drastically.
Either way, if you’re renting, consider waiting out the market and saving up money. You can always up build your cash and make a down payment when interest rates lower and the housing supply catches up.
God bless your Prosperous Soul,
Stephen K. De Silva
About: Stephen K. De Silva is an author, speaker, and financial coach. From 1995 until 2017, he served as the CFO of Bethel Church, and a member of the senior leadership team. Stephen’s blend of experience, training, and gifting make him a pioneer in the subject of money. You can reach Stephen at hello@prosperoussoul.com