Blog > What is the cost of waiting to buy a house? | Renting vs. Buying in Austin, TX
What is the cost of waiting to buy a house? | Renting vs. Buying in Austin, TX
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Many people believe that renting is cheaper than buying a house. After all, when you rent, you don’t have to worry about things like maintenance and repairs. However, what many people don’t realize is that by waiting to buy a house, they’re actually losing out on potential earnings. Let’s take a closer look at the numbers.
According to the National Association of Realtors, the average American home buyer loses about $1,300 per month and $30,000+ over two years in buying power by waiting to purchase a home. This is because as prices continue to rise, incomes generally don’t keep pace. In other words, your money doesn’t go as far as it used to.
For example, let’s say you’re looking at a house that costs $300,000 today. If you wait just one year to buy that same house, it will likely cost you $309,000. But if you wait two years, it will probably cost you $318,000. When you waited two years to buy a house, your $300,000 budget can only buy you a $265,000 house—a loss of nearly 12%. So not only are you paying more for your house, but you’re also getting less house for your money. And if you wait five years? The price could jump up to $345,000! As you can see, the longer you wait to buy a house, the more expensive it becomes.
Of course, there are other factors to consider when deciding whether or not to buy a house. Things like job security and interest rates play a role in the decision-making process. However, if you’re on the fence about whether or not buying a house is the right move for you, it’s important to understand the financial implications of waiting.
The data is clear: on average, home buyers lose out on thousands of dollars by waiting to purchase a home. So if you’re thinking about buying a house soon but haven’t pulled the trigger yet, remember that time is most definitely money!
If you’d like to better understand the cost of waiting and how it affects your specific situation, we would love to help. Reach us at (512) 308-3244 or [email protected].