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Should You Buy a House With Inflation on the Rise?

Should You Buy a House With Inflation on the Rise?

If you are a fist-time homebuyer, the current economy could be putting a damper on your homeownership dreams. With rising home prices and inflation upping the cost of life’s basic expenses, is now really the time to dive into your first mortgage? And if you wait, could you be priced out of the market completely?

A predictable mortgage payment each month not only helps you hedge against rising prices elsewhere in the economy. Homeowners typically have a net worth that’s 40 times greater than renters. Even if you have to start small, buying is a path to building wealth.

But how exactly does spending money to get into your first home help you build wealth?

  • Building equity vs. paying rent – each time you make a mortgage payment, you essentially build a bit of equity in your home, as long as there isn’t a housing crash. You’re only building your landlord’s equity each month you pay rent.
  • Mortgage interest deduction – homeownership makes you eligible to deduct your mortgage interest and property taxes on your federal taxes each year, which can reduce your tax liability and free-up money for retirement and emergency savings.
  • Appreciation – your net worth increases when the value of your home increases.
Although interest rates are rising, mortgage rates are still at historic lows:

1970s – 9.03%, 1980s – 12.7%, 1990s – 8.12%, 2000s – 6.29%, 2010s – 4.09%, 2020 – 3.11%, 2021 – 2.96%

Consider buying now if:

  1. A mortgage payment would be less than your rent
  2. You have a down payment saved up
  3. You’re pre-approved for a mortgage
  4. You’re ready to be patient

Consider waiting to buy if:

  1. Renting is still a great deal in your market
  2. You’re struggling with a down payment
  3. You could use some time to improve your finances
  4. Home buying and homeownership stress you out

Alternative path to home ownership:

  • Tired of burning money on rent?
  • Like to start building equity for your future?
  • Not quite ready to buy a home?
  • Like to try before you buy?
  • Need flexibility before commitment?

We’ve partnered with 5 real estate lease-to-own companies, that make it possible for you to move into your dream home today. Rent with built-in savings for your down payment, then when you are ready, turn your savings into a mortgage – and give yourself the power of homeownership.

How it works?

  1. Get qualified and set your home budget
  2. Find your dream home
  3. The lease-to-own company will purchase your dream home
  4. Buyback from the lease-to-own company

When considering homeownership, having a clear understanding of market and economic trends, your individual financial status and life situation is imperative.  With more than 20 years experience as a Georgia licensed real estate agent and 15 years as a Certified Public Accountant, let me be your trusted advisor on your journey to homeownership.