Waiting around for a market correction is rarely a good reason to keep renting. The longer you wait, the more money you are putting toward someone else’s mortgage instead of your own.
Is it better to buy right away or rent until there’s a market correction? The truth is that it depends on your circumstances.
To help you determine what’s right for you, there are a couple of things you should ask yourself. First, how long are you looking to rent for? If the period of time is short, it’s a good idea to rent. This is especially true if you are only looking for temporary housing.
If you’re only looking to rent because you want to wait for prices to correct themselves in the market, there are a few statistics you should be aware of.
The average rent of a small home is $1,500. If you pay this amount each month for a full year, this would amount to $18,000.
If you’re waiting around for the market to correct itself, you are throwing away a lot of money. Over the course of three years, a monthly rent of $1,500 would amount to $54,000. Why help someone else pay off their mortgage when the money could go towards your own?
A typical mortgage will be paid off within 30 years. The longer you wait, the longer you’re putting off having a paid-off home of your own.
If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.