You should at some point buy a home. If you’re lucky enough to buy at the bottom, that would be great. But without a crystal ball (one that actually works) we are all just guessing what the bottom is. Is it 3 years from now or next year or ten years? Will the bottom for a 1900 sq ft Harveston home be 400k or 200K? Most of us are hoping for 200K. The fundamentals are leaning towards some kind of drop, not sure how much, but some kind of drop. Everyone thinks they own a crystal ball, including myself (I’ve made many predictions).
You’ve presented us with enough information about your finanial situation and I definately think you can afford this purchase. I have been wondering why you haven’t been saving for a down payment, and this makes your monthly ability to pay a little sketchy. It is good practice to try and put away the difference between what you are currently paying and what you would be paying if you purchased a home. A six month period is advisable.
I’ve seen a lot of rent vs buy annalysis on this post and they are very accurate. At the begining you will always or most of the time pay more when buying vs renting. There will be a time during your mortgage when it is cheaper to buy then rent. Rents will always increase and if you have a fixed rate your mortgage will remain the same. It may be true that rents may drop in the near future, but in the long term rents will always go up. And if you ever pay off you mortgage you will be able to live rent free, and you would only have to pay taxes, insurance, and HOA. And if you move before paying off your home you should have some equity to trade in for a larger/better home (at some point maybe in the far future). There are also many other cost to renting and buying (too many to list).
