I don’t get this logic. If you buy, you’re paying interest instead of rent. I’m simplifying here, but if interest is more than rent, you loose. Either way you have to pay to have a roof over your head. I agree that it’s way too early to even think about making offers, much less submit offers.

Hi PerryChase,
In your scenario(that link you posted to your site above) you compare ‘buying now at a certain rate’ with ‘buying later for a lower price at a higher rate’.. You’re saying the buying later is better because you can save more money towards the down payment right? All I was saying, is that the ‘buy later’ person still has to live somewhere, and in fairness that factor should be considered in your calculation, especially since you are the using opportunity cost on the downpayment for that wait time as one of your supporting points.. by waiting a year the buy later person will have to pay 12k+ in rent.. that’s 12k less that you have for that hypothetical down payment.. do I make any sense?

Sure the buy first person is paying interest, but that was already accounted and from what I read bore the majority of support for your original argument.. all I was saying is that they have a place to live, and are paying some principal.. while the other person is paying rent while waiting, I didn’t see rent in yours.. so where is that person in your hypothetical living?

Look forward to your response and appreciate everyones feedback.

PS. PerryChase, I see part of what you’re saying – if the net diff of interest vs rent is negative then thats lost money.. but at the offer price and downpayment I’m looking at, the mortgage and rent are almost the same, which would mean rent is more than the interest… How do people feel about a mortgage that is the same as rent in area? Consider?