Is it crazy to buy a primary right now?

Question

My wife and I are new investors who only own a couple doors.

We currently rent and had planned to buy a primary residence during this time. Covid obviously changed all that and the combination of an insane sellers-market, record low interest rates, and serious economic uncertainty has me second guessing it.

Should we just keep renting until after the election/winter and then re-assess? Everything's overpriced and I already hate the idea of buying a liability just to live in.

Note: actively searching for house hacks (LTR or STR) but struggling to find promising deals there too.

Opinions on this?

Note: actively searching for house hacks (LTR or STR) but struggling to find promising deals there too.

Opinions on this?

Russell Brazil · Answer

If you think its overpriced now, what do you think its going to be like after all this government printed money keeps finding its way into the market over the next year, two, ten?

Chris Davis · Answer

@Ross Bowman We just got our offer accepted 30 min ago, literally on our new primary. We will now have 2 rentals, a SFH and a 4 plex. If the house, your primary has what your family wants and within, key word, your budget you want to spend on housing, then go ahead.

The only thing you, we can do right now, is make the best decision we can, with the most current and best information we have, Right Now. Other than that, everything is highnsight 20/20.

Best of luck to you and your family.

Jon K. · Answer

@Ross Bowman This is a very subjective question. How much do you want to spend per month on your own housing? What are your goals with your investing and does a house hack fit in with those goals or will you be better doing a simple owner occupied deal? If you find a primary that fits your goals and criteria based on today's numbers then no it's not crazy. I don't try to time the market.

It may not lead to a deal, and there may be nothing but garbage there for your farm areas, but many auctions through the Hud Home Store are restricted to owner-occupants for the first couple of weeks. If you're house hacking, that should thin the competition a bit. No guarantee you'll find anything good there but can't hurt to look.

https://www.hudhomestore.com

Ross Bowman · Answer

Very true and we would still be buying something well within our means. I'm not going to go overboard.

Brett Tvenge · Answer

@Ross Bowman some people like sitting on the sidelines ‘waiting’ for the dips. I think with interest rates this low it’s crazy not to buy.

Ross Bowman · Answer

Thank you for that insight man, it's very helpful. I think based on the general consensus here, and what we're looking for (a primary that can also be an STR house-hack), buying isn't such a bad idea. Especially if we can make money while we're there.

Ross Bowman · Answer

Thats a good point actually. I guess I've been hoping for some kind of dip but with the amount of artificial stimulus flooding the economy, it may not happen for a while.

Anthony Vicino · Answer

Exactly this.

Money is unlikely to ever be cheaper and that "insane seller's market" you mentioned isn't necessarily going away anytime soon. Sure, within the next 12-24 months there may be some great deals coming on the market at owners who purchased a bit too thin on the cashflow find themselves crunched and suddenly motivated to sell, but that's kind of irrelevant when you're looking to buy a primary residence which is a decision most people make more for the emotional/stability reasons than for the cold-hard investor reasons.

Main question to ask is can you afford what you want. If so, you're in the clear. If not, then not.

Ross Bowman · Answer

Appreciate the insight here Jon. Very helpful and agreed. I've never actually heard of the Hud Home Store - I'm going to check this out! Much appreciated sir.

Is it crazy to buy a primary right now?

Most Popular Reply