In several of my previous blogs, I have noted that more and more young Americans are either moving back home or renting. For the most part, I am addressing young adults 25 to 34 years in age. Multi-generational households are also on the rise.
Over the years, I have never encouraged our Buyer clients to be “house poor”. I have always said that there is more to life than making house payments and no one should stretch themselves too thin – – although many choose to do that on their own!
The only exception to my rule has always been First Time Home Buyers. It is sometimes tough – – and a bit of a stretch – – to buy that first house. It is very important, however, to jump on the merry go round and bite the bullet, largely for three reasons.
First, many First Time Home Buyers put this decision off because they want to “save more money”. Well, everyone over estimates just how much money they can save in a year or so. In the meantime, there are other considerations.
The second consideration is that the cost of the very same home that you are considering purchasing will likely be several thousand dollars more if you wait just a year. This, in effect, wipes out any additional savings that you were able to generate.
Third, and perhaps as important as any, is the uncertainty with mortgage interest rates. They remain at historically low levels, but it is anyone’s guess where they may be going and when. No doubt, interest rates simply must increase in the forseeable future.
Owning a home remains the single largest investment for most Americans. I previously quoted a statistic that the average net worth of a home owner in this country is $250,000 and the average net worth of a tenant is $4,000. When you write that rent check out each month you are building your landlord’s wealth – – not your own!
For professional and expert assistance with buying your first home, contact Wolfe & Company Realtors. We can guide you through the process and you will be ever glad that you did!
Ray “Buz” Wolfe, Jr.
Broker/Owner
Wolfe & Company Realtors
*Ray L. “Buz” Wolfe, Jr. is a licensed Real Estate Broker in the Commonwealth of Pennsylvania. He is not an attorney and is not licensed to practice law. No comments made within the confines of his blog should be construed as legal advice.