June 28, 2022 at 11:27am | Mikkel Dybvig

Is Now The Time....To Buy or Not to Buy?

Is now the time to buy a home in the Reno area? I get asked this same question or some variation of it every day. My standard answer is, it depends on your situation, but overall my answers trends towards yes! For most people, homeownership is a long term investment (and you gotta live somewhere, right?), so the sooner you start the better. It’s like a friend of mine said the other day “you’re buying a home no matter what, you just have to decide if you are buying one for yourself or for your landlord.” 

So why isn’t everyone who can buy, buying?

Different people will have different reasons for not jumping into homeownership. It could be an upcoming move to a new city, waiting to consolidate households after getting married, or it could just be fear. Since each person’s situation is going to be different, let’s look at the 2 main things I hear from people: Interest rate increases and the possibility of a market crash.

If your main concern/fear is interest rates, then the answer to the question “should I buy now?” is yes. Let’s say you decide to buy now and lock in an interest rate of 6% (about what they are running as I write this blog), but rates drop 6 months from now, oh no, what should you do? Simple, refinance to a lower rate. This will cost you a little money in the short term but the overall savings you get over the life of the loan and the equity you are building in an asset that you own far outweigh those initial costs.

And if the rates go up beyond the 6% that you locked in, won’t you be happy to be at that lower rate (and already in a home that you own)?

If your main concern/fear is that the market will crash and you may be buying at the top, consider this: for most people homeownership is a buy and hold (live in) game. On average, people are staying in their homes for 13 years. There can be a lot of market and interest rate changes in a 13 year period. And also during that 13 year period homeowners have been paying off their own mortgage and not someone else's (see my friend’s words of wisdom above). If your monthly payment was $2500, then you have paid around $390,000 towards principal and interest in the time frame. Is that money better spent on an asset that you own or that someone else owns?

So if you are able to buy, what are you waiting for? Let's find the right home on the right terms for you and your family. And if you aren’t sure if you can buy, let’s find out together what it will take to get you ready. Because in the end you ARE buying a home, you just have to decide if you are buying it for yourself or for someone else.

Mikkel DybvigKeller Williams Group One Inc

Cell: 702-338-3387
Email: MikkelDybvig@Gmail.com



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