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Real Estate - Should I buy or should I wait?

With interest rates being low, and with what my mortgage would be being lower than my rent - I've been looking to buy for 6 months now. I know there are pros and cons to the market now, curious to hear everyones take. Should I buy with the frenzy, or will the market settle.


I'm having some serious FOMO not getting a house like yesterday.

Should I Buy?
Attached poll
*Voting in this poll no longer yields commission.
๐Ÿฑ Off-Topic
๐Ÿ’ธ Investing
11
desperado
Politicker
+5
Head of Business Development
If you're investing and the property is gonna be cash flow positive go for it. If you're looking to buy to live-in, I'd wait.ย 
beerisforclosers
Politicker
+8
Account Manager
Agree
braintank
Politicker
+6
Enterprise Account Executive
Totally depends on your current situation and where you live. In general real estate is a good investment, but the market is "frothy" now, especially in certain regions. Are you planning to buy a place to live or for an investment property?
BCD
Politicker
+6
BDR
Currently live in Denver, CO. Iโ€™m looking to live in the home, however donโ€™t have any desire to stay in the state for longer than 5 more years. Hopefully looking to turn a profit once the time comes to move/upgrade.ย 
braintank
Politicker
+6
Enterprise Account Executive
Typically the break even point for real estate is several years, depending on how fast the market is appreciating. If you're not planning to stay there long term you might be able to make a better return on your money investing in the market vs real estate. I think sites like Zillow have calculators to model how much you'll make based on historic appreciation trends.
JuicyKlay
Politicker
+9
AM
The time to buy was in January or February. Thatโ€™s when we did and got an insanely low rate and way lower house price.ย 
BCD
Politicker
+6
BDR
Yep, had a feeling that was the time to buy. I was being out bud left and right even then. However, looking back at the prices the houses sold for, they sold for less than what I am offering now (on houses IMO are worth less).ย 
SalesPharaoh
Politicker
+8
AM BDR
Buy if you can rent out this property.ย 
CaneWolf
Politicker
+12
Call me what you want, just sign the damn contract
Ignoring all the pros and cons of renting v owning, the fundamentals in real estate market are still really strong. What's pushing up housing prices is:

1) Actual demand to own
2) PE firms using properties to rent and drive recurring revenue
3) REITs and platforms like Fundrise
4) Airbnb/Vrbo

What's NOT happening is people using crazy amounts of personal leverage to buy homes. If Airbnb/Vrbo demand had stayed really low, that would've opened up the market to some degree. The opposite has happened.

In short, I don't think prices are going down anytime soon. If you find something you like and you can actually buy it, do it.
funcoupons
WR Officer
+11
Kahluapons
There's a huge bubble on real estate in most of Canada right now, prices are sky high and there are a ton of bidding wars going on. Not an ideal time to buy at all.
LordOfWar
Politicker
+6
Director
I always hear people saying "The best time to buy is 5 years ago, the second best time to buy is now."

I bought a house in March and am moving in next week. Am I worried the prices will drop? Yes. Did I get a great mortgage rate? Yes. Did I over-extend myself? No.

I know regardless of the short-term market I will be building equity and don't plan to use my home as my retirement fund. I was joking with the wife that if the bottom falls out and prices drop we should just buy another one and rent it out.
Hotsaw
Politicker
+4
VP Sales
Depends on the market you're in and your lifestyle. I recently bought after years of renting. People look down on renters, but the flexibility both in terms of location and type of place is always overlooked.ย 
funcoupons
WR Officer
+11
Kahluapons
I don't understand the renter hate. I'm single with no kids and am likely not going to live in this city long term, what would I want or need to buy a house for? No hating on people who do want a house, but I get annoyed when people ask me "don't you want a house?" For what? My apartment is big enough for me, modern, I have a great landlord, and if anything breaks and needs repairs it is not my responsibility, and I don't pay for property taxes or utilities aside from electricity. Don't have to shovel snow, mow a lawn, or rake leaves. I can decide to move whenever I want. Houses have pros too, but renting makes most sense for a LOT of people.
Hotsaw
Politicker
+4
VP Sales
"You're paying someone else's mortgage" is the dumbest comment I used to get too. Sure I'm covering that, but I'm also getting a ton in return (everything you mentioned). It's true a house in an investment, but it is NOT a liquid investment - even in the hottest of markets. There is a utility value to your house - in that you and perhaps your family - need to live somewhere. I spent year renting and the extra capital I had from no upkeep on the properties fueled travel, investing and multiple pints!
Broncosfan
Politicker
+5
Account Manager
I bought my first house in October. Prices were as low as they were going to be for a while in my eyes. We got a 4BR 2300 SF house just outside of Dallas for 250k. We could sell it today for 310k+ easy. This market is insane hot for sellers right now, for buyers not so much. I would wait.
TheRealTommyCallahan
Arsonist
+6
Assistant to the Account Executive
Depends on where you live and your situation. I'd look at places that were growing before the market increased everywhere. Some places will go back down but other places will still rise. Western states IMO are growing too fast, like ID, UT, and AZ. If you can afford to buy there then I'd do it because it is not going to stop. Especially UT. The tech scene there is growing at an insane rate.ย 
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