The Cost of Waiting to Buy a Home

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Renters often wonder if they can afford to buy a house. Most of the time, there’s a better question they should be asking: Can they afford NOT to?

Let’s face it: renting is expensive. According to RENTCafe, national rents average more than $1,440 per month, and they’ve been growing steadily for nearly a full decade.

But it’s not just sky-high rents that are the problem. For one, renting does nothing for your long-term wealth. Throw in current housing conditions, and renting can cost you big time — both now and down the line.

Are you currently waffling on buying a home? Not ready to pull the trigger just yet? Here’s are five ways you’re losing out by waiting:

You’re throwing money in the landlord black hole.

Renting is essentially a black hole. You’ll never get it back, and it’s not going toward owning your property and building equity. It only pays your landlord’s mortgage — plain and simple. 

You’re losing out on historically low interest rates.

At the time of publication, mortgage rates haven’t been this low in nearly three years — and it probably won’t last for long. Waiting even a few months could mean a significantly higher interest rate and, subsequently, a higher monthly mortgage payment. Over the long term, it means thousands more paid in interest, too. 

You’ll probably pay more for your home later.

Home price growth is finally slowing at the time of publication. In fact, according to Zillow, median home prices actually dipped between April and May 2019. Unfortunately, most experts predict this won’t last for long. In fact, many actually expect home prices to rise as the year goes on.

In short? That means waiting too long will cost you — both up front (in your down payment) and for years to come (in your monthly mortgage costs).

Your future won’t thank you for it.

A house can play a critical role in your retirement strategy, giving you a substantial nest egg to tap decades down the line. It also gives you equity to leverage should you need cash for an emergency or other sudden expense. You don’t get this sort of financial safety net with renting, no matter how low your rent may be.

The Bottom Line

As you can see, putting off buying a house can cost you big — and not just in the here and now either. Delaying your homeownership plans can have significant, game-changing effects on your future and what you can do with it. Want help getting out of the rent race and investing in your long-term wealth? Contact a loan officer at Embrace today.

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By Aly Yale / August 5th, 2019 / Categories: / Tags:

Aly Yale

Aly J. Yale is a freelance writer focusing on real estate, mortgage, and the housing market. Her work has been featured in Forbes, Bankrate, The Motley Fool, Business Insider, The Balance, and more. Prior to freelancing, she served as an editor and reporter for The Dallas Morning News. She graduated from Texas Christian University's Bob Schieffer College of Communication with a major in radio-TV-film and news-editorial journalism. Connect with her at or on Twitter at @AlyJwriter.