NOW IS A GREAT TIME TO BUY YOUR FIRST APARTMENT
NOW IS A GREAT TIME TO BUY YOUR FIRST APARTMENT
By Gregory Healy, Sovereign Associates Inc
This is not often heard in the press but having been in this business for over 30 years, I want to share my point of view on purchasing a first apartment now.
People always need places to live. People prefer owning their own homes. When I started working in real estate in the late '80s, mortgage rates were hovering around 10%, coming down from 12% earlier in the decade (Source: Rocket Mortgage). All through the years, people have still successfully bought and sold homes.
The critical question is not what the interest rate is now; the critical question is whether the combination of the purchase price and carrying costs is a good value compared to the cost of renting an equivalent home.
If you can purchase for the same monthly outlay as if you are renting, this is an excellent purchase as you will build equity monthly. As the cost of owning begins to climb above the cost of renting, then it is time for a deeper discussion. It is time for you to call your broker to come alongside you to guide you along the path to purchase or not.
A broker worth your trust will be happy for you to go either way.
