If Girl Ninja and I didn’t have a goal to buy a house, we’d be doing so much more with our cash. We’d be traveling, sleeping on a king size bed, driving nicer cars, giving more money to charity, etc. It’s crazy to think that a future expense can dictate so much of our current financial habits. Sometimes, I fantasize about being a lifelong renter. Knowing that I can immediately downsize, upsize, or move whenever I want. Not to mention that I could immediately blow half of that $50K we have saved up for a down payment on kettle corn and Dr. Pepper. Love me some D.P.
As appealing as lifelong renting can be, the better part of me resigns to the numerous perks of home ownership. I love the idea of being able to remodel, decorate, paint, tear down, and build whatever the heck I want, whenever I want. I love the idea of paying off the mortgage and not having a house payment. I love the idea of locking in a payment and never having to worry “When will rent go up?”. Ah yes, buying has some major perks.
///super awkward transition///
Personally, I don’t think home prices are increasing over the next 5-ish years (in fact I think they’ll drop further). That said, interest rates are currently at STUPID LOW levels and will likely be going up. The question is, When? Will rates stay sub 5% for another 12 months? Two years? Five years?
I’d love to have another two years of renting ahead of me, but if rates go up soon, we could be forced in to buying earlier. For now we plan to just keep on saving so that if the “right” opportunity presents itself, we will be ready. Wish I had a crystal ball 🙂
How long do you think interest rates will stay under 5%? What made you “ready” to buy a house? Any homeowners miss renting?