Should You Buy a Home in Today’s Market?

By Michael Durr

"Mike is a total pleasure to work with! Great lender who explains everything thoroughly and gets you into a product that works well for you. Highly recommended!!" - Tyler Tomek

Should you buy a home or not? I recently had a conversation with one of my clients that made me think about it, and I just had to share. If you’re a first-time home buyer, you will find this helpful.

There are plenty of reasons why purchasing a home is a great idea. First off, building equity is a major benefit. When you own a home, every mortgage payment goes to your ownership state, unlike paying rent, which simply goes to your landlord.

You have the freedom to make changes to your property, such as painting walls or adding a deck.

Another perk? You get to enjoy your space without the restrictions that come with renting. You can host a get-together with your friends and family in your backyard or customize your living space depending on your tastes. And when it comes time to sell, you can reap the rewards of all those upgrades or enhancements.

But buying a home is not for everyone. You need to have a stable income to support your loan payments, and once you commit to a house, it can tie you down. This means you might not have the freedom to pick up and move across the country whenever you feel like it.

For those of you with a stable job and ready for a long-term commitment, buying a house is one of the most important financial decisions you’ll ever make. And you get to enjoy the benefits if you approach it wisely.

Now, let’s talk about leverage, which is one of the most compelling benefits of owning real estate. When you buy a home, you’re investing a small percentage, around 3% to 5% of the purchase price, as a down payment. Why is this important? Because it means you’re using that small amount of money to control an asset worth much more.

Let me share a quick story of one of my recent clients: he bought his house in 2029 for $225,000 and sold it in 2024 for $350,000. That is a huge $125,000 gain over five years. Considering he only put down about $15,000, including closing costs, that’s an 800% return on his investment.

Where else can you get an 800% increase in your investment? If you were to put that $15,000 into gold, stocks, or even crypto, you’d be hard-pressed to find that kind of return. You can do that with real estate, even with a small investment, as long as you’re consistent and patient. Of course, you need to follow specific guidelines and make smart choices when buying a home.

I’m here to help you make that discernment when you buy a house so that you get a high ROI when you sell. You may have started saving some money and feel unsure about jumping into homeownership. That’s totally okay. Having a financial cushion is smart.

I’d love to hear your thoughts on this topic. If you have questions, let me know. Call me at (281) 348-9899 or send an email to mike@mortgageguys.pro. I’m here to help guide you through this decision-making process.