Home Buying Heuristic - 30/30/3
Should you buy THAT home?
Home Buying
It is a topic that is coming up a lot recently and it isn’t a wonder why.
People who missed buying a home pre-Covid scare of 2019 watched as the market froze (how many people weren’t willing to open their home to buyers/go to strangers home during the lockdowns, even if they could).
They watched mortgage rates hit generational lows while the government smashed the ‘print’ button on dollars and gave out stimmies to all. This lead to home prices taking off.
Just when things started to get to normal-ish, mortgage rates sky-rocketed and the housing prices barely moved.
So there is 5ish years of people who want to get a home and haven’t. After a while, you can talk yourself into anything and it seems we are starting to hit a point where a lot of would-be buyers are capitulating and getting a place.
There are other people who did get a pre-Covid scare home who are now at the stage of looking to upgrade. They are getting to the same level of capitulation wondering if houses are only going to be more expensive and if they should just bite the bullet and upsize the mortgage payment to get a new house.
It doesn’t matter where you are in the home buying journey, there is one near-universal truth:
Your home is one of the biggest purchases you will make and not something you want to get wrong financially
This post will go over some home buying thoughts and a really nice rule that will make sure you aren’t over-extending your self to get a home that will be more of a burden than a blessing.
Get caught up on a few of the many other posts about mortgages and housing: