I work with a lot of first time home buyers and always educate them about the cost of waiting to buy a home in New Jersey. Most are dual income couples who are currently renting and therefore have no tax deductions. For them the savings is unbelievable.
To help other Millenial home buyers better understand how their finances will be impacted by putting off a home purchase (it takes time, energy and frankly you’d rather spend your free time doing just about anything else), here is a great example:
BUY NOW: Let’s say you have enough saved to purchase a home for $500,000. Based on putting down a 20% deposit (i.e. $100,000) and taking out a conventional 30 year mortgage loan, at the current 4.12% interest rate,
Your Monthly Payment with Interest Would Be $1,156
(which is probably equal to, or less than what you are paying now)
WAIT TO BUY: Let’s say you decided to wait 2 years to make that same purchase. In that time prices continue to rise at the same average rate they have been rising in the last two years (i.e. 7%) and the interest rates continue to climb as well up to 5.3%,
Your Monthly Payment with Interest Would Be $1,674
THE DIFFERENCE: $518 per month / $6,212 per year / $186,480 over 30 years
So if continuing to throw $17.00 per day out the window doesn’t sound like a wise idea (the difference in price per day) and you would rather put your monthly living expense into an appreciating asset that will also offset some of your income taxes, then fill out the very concise entry form (only 8 questions) below and we will get you started with our concierge level of service which minimizes your time spent on searching for a home and maximizes what you’ll get based on your budget.