The older Realtors get, the more they like to tell stories. Let me tell you the story about the first house I ever sold.
It was 1974. I was a Realtor in Orlando. I was showing houses to Terry, a cab driver and Mary, his wife, a waitress. They felt like the largest payment they could possibly afford was $190 per month. We found a house in a neighborhood called "Monterey Homes". The price was $18,900. The payments would be $195 per month. We found another house in the same neighborhood that they liked better. The payments on this house would be $205 per month. They decided to go for the nicer, $205 per month house. They bought it. It was my first sale.
Twelve years later, I was walking through the Fashion Square Shopping Mall in Orlando. A lady runs up to me, hugs me and says, 'You are Ron Climer You are our family's hero. I pray for you all the time." I replied, "Who are you?". She said, " I am Mary. My husband Terry and I bought our first house from you in 1974. You talked us into paying more payments than we thought we could possibly pay." We sold that house last year. We made $38,000. That is more money than we could ever have saved in a hundred years. We have bought a bigger nicer house You made it happen by getting us to buy that first house and make those sooooooooo big payments.".
If you are considering waiting or not buying a house to live in because you can not afford those big $1500 per month payments, change your mind. If the mortgage company says you can afford it, you can afford it. Watch this video if you do not understand how the bank knows what you can afford. https://www.youtube.com/watch?v=Wy1Y7zDO3M4&t=219s
Please do not stay in that rental. You don't own it. The rent will go up. Your house payment will never go up. Tell the Terry and Mary story to your parents. I am confident that they have a similar story. Everyone has a story about how they thought their first house payment was impossible. A few years later, no problem.
As long as we use paper money, we will have inflation. There is no better protection against inflation than owning a home to live in with a fixed payment that seemed large when you started fifteen years ago. It usually seems OK today.
Interest rates will go up soon. One per cent of $100,000 is $1000. Divide that by twelve months. That is $83 per month. If you wait until next year to buy that $200,000 house, that is $166 per month more that you are paying for waiting.
MAAAAAAYBE the same house will cost more money. Add that to higher interest. House have been appreciating since 1492. When Terry and Mary bought their house, an average house in Orlando was $33,000. Today it is closer to $233,000. It is the same house. Watch this video that I posted in 2012. Time flies! https://www.youtube.com/watch?v=dKaIsTSTsEU
Prices go up. House payments stay the same.
If you live anywhere near Hendersonville, N.C. , call me if you want to become a homeowner. 828 755 6996