First Time Home Buyers + Uncertain Times = Cold Feet?
By Mary Ann Cadorna
First Time Home Buyers + Uncertain Times = Cold Feet? By Mary Ann Cadorna
Presently, it appears that these uncertain times have some First Time Home Buyers scared. They are losing confidence and don’t know what’s going on, what will happen to them, their jobs, the economy and their future. Looming concerns become the dark cloud that blocks out the sun light of optimism, and I’ve had three potential buyers get cold feet as a result.
My take on this climate is this: with unpredictable times, your emotions may get the best of you and the best course of action is to focus on opportunity. You will still need a roof over your head no matter what. While interest rates are still historically low and rising, there is still time to act and let’s face it: you’re working for nothing because there are no deductible benefits to renting (consult your tax advisor). In owning real property you gain equity that adds to your net worth so buying in many cases is better than renting. Having a roof over your head that is yours is better than having a landlord who owns the roof over where you live.
Moreover, a fixed monthly mortgage adds stability to your life; you can plan and build upon that fixed expense that will never increase, providing you don’t refinance. With renting you don’t have a fixed monthly payment as your budget’s foundation. The economic instability of renting equates to yearly rent hikes and every year that increase cuts into your budget, even if you don’t get a raise or had a not so a good business year.
Owning a home also offers a feeling of confidence. You are working for something which adds to your steadiness. No longer will you face the renter’s fear of the unknown. You can’t be evicted anytime at the whim of the landlord and forced take a hike due to a 30 or 60 day notice to vacate.
So don’t let uncertain times prevent you from buying your first home. Uncertain times are a fact of life and owning a home is your best protection. That proverbial white picket fence surrounds your property and safeguards you and yours. It offers shelter from the storms of life, where you can all hold on tightly to one another. When they pass you will still have each other and a place to live because you invested in a home which became your safe-haven from a tumultuous climate.
By Mary Ann Cadorna © February 8, 2017
Mary Ann Cadorna