“Why would the buyers not wait for the rates to drop since we are in an inflationary period?” as most people ask us, realtors.
Of course, you can wait. You all have the freedom to choose to wait.
However, did you know that during an inflationary period, home prices continue to climb? So by waiting, you actually lose money. Then what has happened to your rents the last couple of years? They keep raising. So your rent is going up… and home prices are going up.
However, when buying a home you get tax breaks off it and you gain benefits.
Say, with a 30-year fixed, you keep on paying, the same goes with renting that 5 years go by, if the rates remain the same, you already have this “equity” when buying a house.
And just a tip, not everybody knows this but take note and this is crucial for this year’s happenings. Home prices are bound to increase during the inflationary period and the following are some criteria you may consider. You are ready to buy even in an inflationary period when:
Mortgage payments might be lower than rent. Work out and research whether buying or renting is fit for your current lifestyle or whatever makes sense to your financial capacity in this inflationary period. You can reach out to your local real estate professional for queries and calculations. Or you may want to start calculating your own just to give you a scope of ideas to weigh on the matter.
You have a down payment saved up. By this time, you researched your market and did calculations, being aware of the inflationary period. You also figured out how much you can offer and the types of mortgages you can get.
You are pre-approved for a mortgage. Pre-approval is the basic but important part of buying real estate.
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