12/07/2023
This is a picture of my girls when they were little, celebrating our last Christmas in our first home.
When we bought that house five years before, we could barely afford it. It didn't get easier either, because in the same year, we unexpectedly found out we had a baby coming. John was in the fire academy and working nights, while I worked days. When the baby came, we took turns watching her (to save daycare money) and barely saw each other. Then two years later, our second miracle baby came. But eventually things did get better. Fortunately, we had a home big enough for all of us, and a good amount of equity in this investment. We used the equity to buy our next bigger home... and thank goodness we did, because that's when our THIRD (and hopefully final) miracle came... and with three girls, you really need the extra room!
With both purchases, we felt our budgets stretched, we spoke at length about the costs we needed to reduce to make it happen- but we didn't wait to buy. Did we ever regret purchasing these homes? ZERO percent, never. These homes were where our memories lived. Where Aislyn walked for the first time. Where we laughed, cried, sang together in front of our tiny baby Christmas tree.
Here are the facts-
If in 1972, you waited for rates to drop before you bought a house… you would have waited 26 years.
1972 - 7.38%
1975 - 9.05%
1980 - 13.74%
1986 - 10.19%
1998 - 6.98%
$𝟓𝟔𝟏,𝟔𝟎𝟎.
That’s the dollar amount of rent paid over 26 years🤯
$1,800/month X 312 months
I’m not saying to purchase outside your means and stretch your budget to where you are house poor, or purchase before you’re financially ready. And I’m not saying we don’t have an affordability crisis.
What I am saying is that a starter home might look a little different than what you thought it would. And 26 years is a long time to pay someone else’s mortgage when you could be building your own wealth in home equity.
If you or someone you know wants to purchase a home but is waiting because of the market... have them give me a call. Let's at least get a conversation started on how the dream of homeownership can be a reality.
