“I would encourage him to, when he writes his rent check every month, look at what the delta is between his hypothetical new mortgage payment and what he’s paying for rent,” she said. By consciously putting that difference into savings, the client can gauge whether his budget could handle the increased cost without compromising his lifestyle.
Felsman’s approach is about more than just preparing financially—it’s also about mindset. She often discusses the long-term benefits of stabilizing housing expenses and building equity, which are key factors that renters often overlook. Even though it might be cheaper to rent than to buy in the short term, Felsman encourages her clients to think about the future.
“Home appreciation is exponential. The sooner you can pull it off, the better off you’ll be financially for the long run,” she said.
The dilemma of whether to wait for better interest rates or jump into the market now is another significant concern for first-time buyers. Felsman’s advice here is pragmatic.
“There’s no way to know if rates will fall,” she said. “If you can make it work now, and you know it’s only going to get better, then why wait? Homeownership should be a good thing, not a bad thing. If you’re methodical about figuring out what your budget is, and you stick to that, then you’ll [succeed].”
Source: mpamag.com