The real estate market and low interest rates are coming together. The dream of property ownership may be closer than you think.
Owning a Property
For many its a dream that seems far away. We millennials, after all, are known as generation rent for a reason.
Today the dream might be closer than it seemed.
The market is in freefall right now. Which means that everything is cheaper.
If you are renting a small apartment right now and have some savings. Chances are you could be better off buying.
Yes, that goes against normal wisdom. But these are not normal times as we all know.
As I said the market is in freefall. That brings opportunity.
People with assets like second homes or rental property. Are trying to turn those back to cash.
That means that a typical 1 or 2 bedroom rental apartment can be had for less than $50k in some places right now. A 10% down payment and legal fees cost less than 8k.
Even if you are not seeing those kinds of reduction in the real estate rate right now. Keep looking because as time goes on this year, that will come.
A mortgage payment on that around 10 years will be less than $500 a month vs rental of up to $600.
So while the monthly payment may be more or less the same. At least it’s paying down something that we own.
So while property ownership may seem like a dream today. But keep an eye on the market. The dream may be closer than you think.
Now, this isn’t sound financial advice. It’s my own opinion only. Before making any financial decision or investment. You should always take some independent financial advice.