What are those two factors that cause the environment to change?

for the record, real estate in the six no longer makes sense to me. i see signs of it every day but i don’t feel like the bubble is ready to burst. and if you study historical trends, there are always the same two simple factors that cause the environment to change…lets see how long it takes for the tide to change, because it invariably will.

Thanks for the kind words! I don’t like to tell people what to do with their money, but I’d be happy to give my opinion.

There’s an emotional factor to buying a home that can’t be quantified. To certain people, having that home is more important than the investment factor. If you’re the type of person that’s always dreamed of owning you home, don’t put your life on hold because market conditions don’t fit your narrative. Just don’t over extend yourself financially, and if you overpay a little consider it the cost of your dream. I’ve wasted much more money on much less.

If you’re looking at it from a financial perspective, that’s a little different. To get a rough idea, I would take the cost of carrying a home in your budget (final cost, including carrying), and subtract what you would pay for rent. If the difference makes you uncomfortable, removes a ton of cash from your financial plan, or just seems wacky – you know what to do.

Feel free to hit my email with any questions, stephen@betterdwelling.com