What is your advice for first homebuyers now?
Now some analysts and research analysts advise first homebuyers to rent at least for the next three years instead of buying their first homes in least affordable countries such as New Zealand, Australia and Ireland. In the meantime some analysts and top investors think some first home owners will defaults in the future due to some reasons.
What do you think about this? Thanks.
Best Answer
4085 points
EthanR answered 2 months ago …
One has to balance the money spent on rentals with no tax benefit and no principal paydown, vs the possibility for further price decline. If one has a very long term horizon, they can buy now. I would look for a well discounted foreclosure that is in relatively decent shape. This will give you further protection against a down market.
If one is planning on only living in an area for 3-5 years, then it makes no sense to buy a home right now. You are better off to rent for that period of time.
