The Expert Podcast

So what do you think about the idea of buying a house? Prices are up, rates are still up—they dropped a little bit. Well, according to The Atlantic, a major publication, they’re saying it will never be a good time to buy a house. You know, the subheadline says maybe 2030, but that’s kind of far away—that’s six or seven years from now. Why are they saying this?

Housing prices have gone up, and the rates have gone up compared to 2, 3, or 5 years ago. It’s certainly more expensive. But the question is: is it still a good idea to buy a house? How do you make that decision? For some, it’s just about how much it costs per month. If it’s cheaper to rent, then maybe it’s better not to buy a house.

But in the long run, you have to remember that if you rent—even if it’s $200 or $500 less per month than a mortgage on the same house right now—that rent is going to go up every year. It could be $50 next year, $100 the following year, and so on. If that happens, eventually, your rent might be more than a mortgage because the mortgage, once you sign up for it and buy that house, stays the same forever until you pay it off. At some point, it actually goes to zero.

So, is it never a good time to buy a house? What’s the downside to buying a house? Your payment isn’t going to go up. Is the price of the house going to go down? The value probably won’t in the long run. Historically, it’s never gone down permanently. Even during the housing crash of 2008, it went down for a couple of years, but it bounced right back up and surpassed the low point.

Even if you bought a house today for $500,000 and paid $4,000 a month for your mortgage, what if, in three years, the house went down to $400,000 in value? Who cares? It’s not like it’s cash out of your bank account. You don’t have to write a check for that $100,000. See what I mean? It’s just on paper. If you’re going to live in that house and stay there, who cares if it went down? In fact, if it goes down, you might save some money because your taxes and insurance will also go down.

Before you can ask whether it’s a good time to buy a house, ask what criteria you’re using. Is it because you think the price will go up or down? Is it because your monthly payment might go up? Plus, if you buy a house, you can never be non-renewed on your lease or kicked out if the owner decides not to rent the house anymore. It’s your house. You just need to pay the mortgage and taxes.

So, is it a good time to buy a house? I know you have an opinion about it. First, I want to hear your thoughts: is it a good time or not? Why? Is it because you think prices will go down, and you don’t want to get stuck? Is it because the monthly payment will be too high? Do you think maintenance is too much, or do you just not want to be tied down to living in one place? What are the reasons why you think it’s not a good time to buy a house?