Rent V. Buy After Rate Cuts
The Federal Reserve FINALLY cut interest rates and everyone is freaking out. What do I do next?! What do I buy?! Should I re-sign my lease this year or try to invest in real estate?!
I'm here to tell you to…
a) chill the f*ck out
b) take a deep breath and
c) sit down so we can chat about renting vs. buying, ok?
FIRST OF ALL…check yourself for having Financial FOMO. None of us wants to be the person who missed out on investing in the next Apple or on buying a house with a super lower interest rate. But this FOMO can also cause us to make financial decisions that don’t make sense for us.
We get so worried we are missing opportunities that we forget to do our due diligence.
So yeah- with lower interest rates is going to come the opportunity to… buy a house with a lower interest rate. But do you actually want to be a homeowner?
HERE'S A REMINDER:
- Freedom
- Flexibility
- Not dealing with homeowner BS (leaky pipes, taxes, etc)
- Long-term investment
- Establishing roots (yay for no moving trucks in your future!)
- Ability to make your own decisions (paint colors, knocking down walls, etc)
Me personally? I'm still going to rent! I used the rent affordability calculator & saw that in NYC my returns will be bigger if I rent & put my down payment money into the stock market instead. Plus- I like the freedom that comes with renting.
But maybe you've been leaning towards buying and now's the time because rates dropped. SUPERB! But do what’s right for you. Don’t just make a decision because of the economy- make a decision because it tracks for your lifestyle.
And I also have a couple of amazing calculators for you to use to help ease your decision:
Price-to-Rent Ratio Calculator
