Reply to Huge spread between rent and mortgage payments

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]Buying in this market hardly makes sense with the interest rates and prices (combined) where they are[/quote]

Everyone keeps saying this as though it's a foregone conclusion that interest rates and prices are going to significantly improve. Lots of people on this forum were also saying that 2019 was a "bad time to move to MoCo", and were recommending to wait for "3+ years". What makes you so sure that conditions are going to favor buyers in the near future? Because if they're not, I disagree that it doesn't make sense to buy in current conditions, even if they're not ideal.[/quote]

+1. If you can afford to buy now it Still makes sense. Look at this way - minute small adjustments in property taxes and assuming a fixed rate loan, your housing payment will never be MORE than it is right now if you buy. It’s very possible at some pi t it may go den if rates go down in th coming years. You shouldn’t base the entire decision to purchase on rates. That’s just silly. Fwiw, you know what happens when rates drop significantly? Buyers flood the market and prices go up. If you want or need to buy now and can afford th payment you should consider. Sooo many people from 2019-2020 who were going to  “ wait it out” actually lost out on so much in appreciation. [/quote]

Makes zero sense to me. Houses we like are around 2.3m and they rent for about 8k. If I buy it with 20% down payment my payment at 7.5% rate would be roughly 13000 and whopping 11500 of it would be interest. That is significantly more money “thrown out of the window” than renting. Unless you have massive amounts of cash for the down payment,  owning is just not the best financial decision right now and definitely not for someone who is likely to move in a few years again. [/quote]

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