Updated over 3 years ago on . Most recent reply
Help me with my Analysis Paralysis
I would like to buy my first house and rent by the room, living in one of those rooms. I was preapproved in Nov for approximately 400k and this was for a VA loan. My salary is 100k, I have 60k cash, and I'm single.
My issue is that I am reluctant to buy given how high property values have risen. The skeptic in me thinks that I should sign a 6mo lease and wait, allowing property values to cool off and drop, then buy a property. On the other hand, I could afford to buy a turn key property and start getting cash flow now. I'd just lose value in the house in 2023.
Any and all advice is greatly appreciated.
Most Popular Reply
Hey Scott!
I'd ask yourself if you really believe prices will come down (in your timeframe) significantly enough to offset paying rent vs being paid rent. You can likely count on being able to refinance at some point in the next 30 years, but you may not be able to count on a lower nominal price. History is a bit against that. What do you lose each month that you wait?
On the flipside, buying in the next 4 months (depending on your market) may see further price reductions, maybe not significant enough to turn the table, or maybe not significant at all.