Buying a home is a huge commitment. Not only for yourself, your spouse (or whoever), but also your bank account. This level of commitment can be so overwhelming that some people choose to rent rather than buy. Even if they know that renting may be more costly than buying in their particular market.
The first thing you probably think about is how long you plan on living in your new home. Ask any seasoned agent and they will tell you a minimum of five years. Yes, only five years.
Why? Because this amount of time will allow you to upgrade with a larger chance of breaking even. Many who start off with an upgrade cycle in mind will begin with a townhouse or condo and then upgrade only after three years.
Think about it. Your closing costs will most likely be thousands of dollars. And for the first few years, you’ll be paying off the interest of your new mortgage. It isn’t until about five years into it will you be paying the actually mortgage off and breaking even.
Wait at least five years and stay ahead of the game.