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Home & Garden

Delaying Your Home Purchase Because of Rising Interest Rates?

minute read

Is renting really the better option?

August 2, 2023

Increased interest rates suck.

As a buyer it means that you’ll likely qualify to buy something in a lower price range than you anticipated. As a homeowner, it means that less of each payment is going towards your principal.

It’s not ideal. We get it.

But does that mean it makes more sense to pay $1500 a month in rent, only to pay down SOMEONE ELSE’S principal?

“Oh we’re just going to rent for a couple years and hopefully the interest rates will drop a bit and we’ll be able to buy what we really want”.

$1500 per month rent x 24 months = $36,000. Have you done the math to figure out how much the rates need to drop to offset that much wasted rent?

AND…if the rates actually do drop a bit, the housing prices will probably go up. That $400,000 house you’ve been eyeing up is probably now worth $440,000.

By waiting, you actually just got further away from home ownership.

Maybe you don’t buy your dream house today, but buying SOMETHING is a step closer. Renting is a step in the other direction.

Remember this… Rent is essentially 100% interest.

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