“I wasn’t planning on Buying Right Now”

“I wasn’t planning on Buying Right Now”

 

 

 

Mr. Petrowsky,

 

My parents have been recommending I speak to you about purchasing a home instead of paying rent, but have been avoiding the buying thing. I pay $1200 per month and they keep saying I’m throwing my money away. Most of my friends are doing the rent thing as well. OK, what advice would you give someone like me?

 

How many young adults think this way? A lot of them! I hear the same story over and over again. So many in this country think the same way so when given the opportunity to coach someone in this situation, I do my part to give the best possible advice and just maybe there will be a new homeowner in the near future.

 

What advice would you give her?

 

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Joe Petrowsky, NMLS #6869

Right Trac Financial Group, Inc. NMLS #2709

110 Main St.

Manchester, Ct. 06042

Office: 860 647-7701 x116

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Cell: 860 836-9294

Email: joe@righttracfg.com

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Comment balloon 28 commentsJoe Petrowsky • November 25 2015 07:32AM

Comments

Good morning Joe. Some young people want an urban experience where buy ib is prohibitive and renting the only option. Most others will find buying over renting a better option if their intention is to stay put more than five years. Enjoy your day!

Posted by Wayne Martin, Real Estate Broker - Retired (Wayne M Martin) almost 3 years ago

Good morning Joe.  Without know more information I wold not say anything. To make a good recommendation I would need some questions answered.  

Posted by James Dray, Exceptional Agents, Outstanding Results (Fathom Realty AR LLC) almost 3 years ago

Smart young consumers may wish to consider a home purchase if they plan to stay in the area for several years. Affordability is a big issue in our market.

Posted by Roy Kelley, Roy and Dolores Kelley Photographs (Realty Group Referrals) almost 3 years ago

Hi Joe.  I would ask her some questions about her future plans and advise her according to her answers.

Posted by Gabe Sanders, Stuart Florida Real Estate (Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales) almost 3 years ago

Hi Joe.  I think it is an education issue.  They just don't know that they can afford a home.

Posted by Conrad Allen, Webster, Ma, Realtor (Re/Max Professional Associates) almost 3 years ago

Joe, if any young person is in a financial position to buy any property, a house or a condo, I would recommend it.  Getting into a starter condo is a foot in the door. 

Posted by Patricia Kennedy, Home in the Capital (RLAH Real Estate) almost 3 years ago

Well I think a lot of this depends on future plans...how long are they planning to stay in the area?  How secure and happy are they w/ job?  Do they want/need flexibility to be able to move (even nearby).  Are they married, engaged, dating, etc.  Sometimes it's worth the premium you pay in rent for the flexibility (and to not have to dip into savings) and sometimes it's the complete opposite.  I'm glad I waited (although in restrospect, maybe I should have done 2 years earlier...but my dad was advising me against that given the ratio of renters to owners in my building.  Hindsight is 20/20 as it went condo 2 years later.  I think I would have gotten for lower interest and lower price but c'est la vie.  You can't always time things right.

Posted by Debbie Gartner, The Flooring Girl & Blog Stylist -Dynamo Marketers (The Flooring Girl) almost 3 years ago

Being a renter myself, I'm probably not the right person to ask, but I'm sure she could probably save money buying.

Posted by Roger D. Mucci, Lets shake things up at your home today! (Shaken...with a Twist 216.633.2092) almost 3 years ago

Good Friday morning Joe Petrowsky -

If a young adult can afford to be a home owner it's a great investment. I started at a very early age and it worked well for me.

Posted by John McCormack, AlbuquerqueHomes.com, Albuquerque Homes Realty (Albuquerque Homes Realty * www.AlbuquerqueHomes.com) almost 3 years ago

Joe, I hear that a lot too, but more and more young people are seeing the advantage of purchasing.

Posted by Joan Cox, Denver Real Estate - Selling One Home at a Time (Metro Brokers - House to Home, Inc. - Denver Real Estate - 720-231-6373) almost 3 years ago

Hi Joe, I can tell you that this was a big topic at the dinner table last night-my son is thinking about buying in NYC and believe me, I am a bit stumped when the prices range from $850,000 and up for a one bedroom!!

Posted by Joanna Cohlan, Designing, Decorating & Staging Westchester Homes (Fresh Eyes For Your Home) almost 3 years ago

For me I was very mobile, and relocated frequently for my job --- moving out of an apartment to a new apartment is a heckuva lot more easier than buying/selling a home.  While "you're throwing money away" is one reason .. there needs to be more investigating beyond that.

Posted by Judith Sinnard, The SMARTePLAN Lady (SMARTePLANS; Houston, Texas) almost 3 years ago

Joe: Many older folks think this way as well. If you can afford to buy, it makes sense to build equity into your own property, not someone else's.

Posted by Anita Clark, Realtor - Homes for Sale in Warner Robins GA (ColdwellBanker SSK Realtors ~ 478.960.8055) almost 3 years ago

Good morning Joe,

I am sure that you will give them the best advice after checking credit.

I have all my kids in homes now and the middle one just added an investment property so you know which way I'm leaning.

Make yourself a great day.

Posted by Raymond E. Camp, Licensed Real Estate Salesperson Greater Rochester (Howard Hanna Real Estate Services) almost 3 years ago

Good morning Joe. Youth is something you can't ever recapture. There is a freedom there that allows you to just get up and go and I think that is part of it.

Posted by Sheila Anderson, The Real Estate Whisperer Who Listens 732-715-1133 (Referral Group Incorporated) almost 3 years ago

I would advise that they really consider it though I believe buying is not for everyone. Many young people like the idea they have no attachments.

Posted by Debbie Reynolds, Your Dedicated Clarksville TN Real Estate Agent (Platinum Properties) almost 3 years ago

Joe Petrowsky Lots of suggestions here, but the truth is "what does she REALLY want?" She probably wants to live close to work and close to her friends. Commuting is probably not high on her list of things she wants to do.

All you can do is talk to her, and be ready when she is ready.

Bill Roberts

Posted by Bill Roberts, "Baby Boomer" Retirement Planner (Brooks and Dunphy Real Estate) almost 3 years ago

I would give her the same speech her parents are giving to her. Stop throwing away your money and buy!

Posted by Nicole Doty - Gilbert Real Estate Expert, Broker/Owner of Zion Realty ZionRealtyAZ.com (Zion Realty) almost 3 years ago

I just did an analysis for rent vs buy of a cute three bedroom ranch house near me. The cost of ownership including taxes and insurance was less than the average rental price for a similar home, and with anticipated maintenance thrown in, it was about even. If someone is planning to stay in that town for a while, purchasing is the way to go!

Posted by Kat Palmiotti, The House Kat (Grand Lux Realty, Monroe NY, 914-419-0270, kat@thehousekat.com) almost 3 years ago

Joe,

That is a tough one.  I have mentioned this before that some of the very wealthy choose to rent rather than buy as they feel their dollars are making more money through their investments.  

Right now here is Santa Barbara, $1million buys you a real fixer upper, so some people can't afford anything except a rental.  A

Posted by Ron and Alexandra Seigel, Luxury Real Estate Branding, Marketing & Strategy (Napa Consultants) almost 3 years ago

More needs to be known about her situation, but generally I advise people to become homeowners. Most of the time it only makes sense to buy versus renting. 

Posted by Debbie Laity, Your Real Estate Resource for Delta County, CO (Cedaredge Land Company) almost 3 years ago

Joe there are good reasons to rent, but most of the time purchasing a home is the right decision.  If this young couple qualify to purchase my advice would be for them to do so.

Posted by George Souto, Your Connecticut Mortgage Expert (George Souto NMLS #65149 FHA, CHFA, VA Mortgages) almost 3 years ago

Joe-Rent or Buy-Simple question but on answer does not fit every situation. As others have opined, the goals and objectives really determine the best answer.

Posted by Wayne Johnson, San Antonio REALTOR, San Antonio Homes For Sale (Coldwell Banker D'Ann Harper REALTORS®) almost 3 years ago

Joe

If they are qualified for a mortgage . . . . and the mortgage payment is comparable to their rent . . . .  Why wait?

Good luck and success.

Lou Ludwig

Posted by Lou Ludwig, Designations Earned CRB, CRS, CIPS, GRI, SRES, TRC (Ludwig & Associates) almost 3 years ago

Joe Petrowsky  I am working with a young couple right now in the same position Whay pay someone elses mortgage and not have a tax right off .. When they get a check from Uncle Sam at the end of the year they will be happier .

Posted by Hannah Williams, Expertise NE Philadelphia & Bucks 215-953-8818 (Re/Max Eastern inc.) almost 3 years ago

Hi Joe,  I would arrange a consultation and learn about their lifestyle and dreams for the future.  Owning may or may not be the right decision.  Educating them is the primary goal... and let them decide what is best for them.  

Posted by Carol Williams, "Customized Mentoring & Marketing Services" (U.S.: I specialize in helping agents who have been in the business 2 years or less create a thriving business.) almost 3 years ago

Everything I have (financially) I have because of that first home purchase, including the real estate career. I could go on about the excuses I hear from the younger generations but I won't.

Posted by Marco Giancola, Realtor (305)608-1922, Miami Beach Florida (Beachfront Realty) almost 3 years ago

Joe - Why not start as early as you can to build equity.  It is just like starting a savings account.

Posted by Grant Schneider, Your Coach Helping You Create Successful Outcomes (Performance Development Strategies) almost 3 years ago

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