Should I buy a home now or later?
It’s a question I get all the time – Should I buy a home now or later? This can’t be answered with a simple yes or no. It’s best to review several factors when making what is potentially the biggest purchase and investment of your entire life.
Your finances are stable, but you may not have a huge down payment. Will this prevent you from being able to buy right now? Absolutely not. Having a large down payment is great for more traditional loans. However, more options have become available in recent years for those who do not have a large down payment.
New loan options and down payment assistance programs have enabled all kinds of households with the tools they need for home ownership. There are even Veteran specific loans which allow our Vets to purchase a home without having to worry about a down payment.
These different loan options and assistance programs may not last forever. Different Presidents, the stock market, and even bank mergers can affect their availability, so it’s best to take advantage of these programs right now.
Renting Now vs Buying Now
Right now one bedroom apartments in Houston, TX are renting for $1,100 per month on average. Bump it up to two bedrooms, and your average jumps up to $1,450. Rental prices in the most desirable areas like Downtown or Memorial can run you up to about $2,000 per month, even for one bedroom. Renting a house instead of an apartment can easily increase your monthly expenses by 50% or more.
Apartment prices and rental home prices are nearly at an all time high, and prices for renting don’t seem to be changing any time soon. When you rent, you aren’t making an investment. You are simply paying for a place to live, a place that you will never own. When you buy a home now instead of renting, you are essentially building wealth. As you pay down your home loan, the value of your home will rise or fall depending on the market. Ultimately, after investing in your home for several years, the house will be worth more than what you owe.
Buying a home now can create another opportunity for you in the future: renting out your property. You can create a stable monthly income for yourself in the future, an income you can’t create if you are renting. It may seem like it can be a headache to rent out a property. Finding tenants, maintaining the property, and screening future tenants can be a giant headache. However, you can simply use a property management company like ours, making the process as pain-free as it is lucrative.
Now is the time to buy
The market has become more stable with prices leveling out, making it a more even playing field for both buyers and sellers. Property values are still projected to rise during the rest of 2017, making now the perfect time to buy. Millennials are starting to purchase homes in large numbers, so it’s important to jump on a property with an offer when you find your perfect home.
Get pre-qualified with a lender who will suit your needs and work with you. Once you are ready, we can find you the perfect Houston area home. If you’re not sure where to start or how to get pre-qualified, we are more than happy to walk you through the process. Feel free to contact a member of our team here today.