I am going to say something not a lot of Realtors will say. Wait for it. Hang on. almost there. Are you ready?
Not everyone should buy a house.
I know, I know. You are thinking this particular Realtor must be crazy. Or that he has some bait-and-switch trick up his sleeve. But no. I will even say it again. Not everyone should buy a house.
Obviously, one of the main reasons not to buy a house is if you can’t afford it. Even if interest rates are historically low, like they are now, you should not buy a house if you don’t have the small amount money necessary for a down payment on an FHA loan or the income for the monthly payments on principal and interest (much of which is tax-deductible).
Another reason is that in some regions of the country it is actually cheaper to rent than to buy a home. Even considering the tax advantages of home ownership and equity building that can happen when buying a home in a low market such as this one. Also, it might be easier to rent to have access to great schools.
Sometimes the timing isn’t right. On this topic, I will get personal. We are renting for a year until we decide what the right Portland neighborhood is for us to buy in. Even though we have spent a great deal of time here over the last ten years, we need to spend some more time living here to know exactly where we want to be.
The point I’m trying to make is that there are many many different reasons for buying a home–or not buying a home. And it is important to know what your needs are before making one of the biggest purchases of your life. Most people are buying a home and not a financial investment. Even though it is a buyer’s market with a great supply of homes for sale, some of the lowest interest rates anyone has ever seen, and solid reliable loan programs, now may not be the right time for you to buy a home.
If you would like to discuss your housing needs to see if you are ready to consider buying a home this year or next year, let me know. I’m always happy to help.