Rent or Buy?
In 1971, the interest rate for a mortgage was 7.33%.
If you waited for interest rates to go down, you wouldn’t have purchased a home until 1993.
You would have rented for 22 years waiting for rates to go down.
Meanwhile the value of real estate quadrupled.
Don’t wait to buy Real Estate.
Buy Real Estate and wait.
Date the rate, but marry the house!
Should You Rent or Buy?
We have clients who got into the market when they were young and have built over $1 million in equity.
When we told this to a friend of ours she responded with a much more extreme story that’s worth repeating, both because it’s fascinating and because it imparts a great lesson:
In 1998, she and her partner bought a house in San Francisco for $650,000. Their friends told them they were crazy because the house had previously sold for only $350,000 just 3 years earlier.
They now own that house free and clear and it’s worth over $2.5 million!
So, should you rent or buy?
Two points we’d like to stress:
1. Get into the market, even if you have to compromise
2. Ignore your friend’s well-meaning advice :)
Got more questions? We’ve got more answers!
Want to an even deeper dive?
Here’s an article from NAR (National Association of REALTORS) – 7 Great Reasons to Own A Home.
