020 WF: Should I Buy a House Now?

WealthFast Podcast show

Summary: The latest podcast episodes answers a pressing question from a listener: Should I Buy an "Okay" House Now, or a Great House Later? Here's the listener's dilemna: He's a single guy who currently has about $10,000 saved. He can use that as a 10 percent downpayment on a $100,000 house. He'll pay private mortgage insurance on the loan, since he's offering less than 20 percent down. And he'll probably move after a few years, since he doesn't think that a $100,000 house will be large enough to accommodate a family, which he'll most probably want in a few years. Should he buy a $100,000 house right now? Or should he continue paying rent and bide his time, while he waits to save up enough money to cover a down payment for a $200,000 -- $300,000 house? In this podcast, we cover all the issues that he should consider, including the transaction costs associated with home buying and selling, the cost of property taxes, homeowner's insurance, repairs, maintenance, and private mortgage insurance, the potential appreciation of the home, and the amount he could earn in the stock market as an alternative. Listen in, and leave us a review on iTunes!