I bought my house at the top of the market, and I am still happy with my decision.
/I am a financial planner. I am educated on the laws of supply and demand, on interest rates, saving and the value of a dollar. I still bought my house at the peak of the housing market in 2018 and...I don't care.
Would I have loved to spend less money on the house? Of course. But we found the right home, at the right time for us. Here is why I am still happy with my decision.
It is a long-term investment.
We have moved so many times in the last ten years, that we were ready for a permanent address. Because we've moved so much, we knew what was important to us, and this house checked all of our boxes. This house fits our current needs and our needs in the foreseeable future. We plan on living here a very long time, and for that reason, we knew this was a long-term investment. Spending a little more now to know we will have what we want for the next 5+ years is worth it to us in the long run.
We locked in a low-interest rate.
While we did buy our house at the top of the market, interest rates are still at historical lows, which saves us money. A win for us!
It has great resale value.
The house is in a great location, in a good school district and the community is tight-knit. Also, it is one-story. One-story homes are very desirable in our area, as they are in most, and they are easy to age into. Having a one-story adds to the resale value and to the potential duration we can stay in this home.
The house is in fantastic condition.
Our home is only 20 years old, was highly upgraded and there was only one previous owner. They did all the work on the house with high-quality design and materials. Because of this, I don't have to worry about replacing anything significant for multiple years, which wouldn't be the case if I bought a quickly flipped home. People flip homes for a profit, construction is often rushed, and the materials are just an expense to their bottom line. The previous owners invested in their home because they loved it and I will happily pay extra for quality.
Last and most importantly - we could afford it.
I have no buyers remorse and feel comfortable with what we paid because we stayed in our budget. Even though we were in a bidding war, we did not let that dictate how much we spent. We set a budget from the beginning and stuck to our guns. Because of this, it still was financially doable for us, and we didn't stretch our wallets on an emotional decision.
If you are looking to buy a home because it is the right time for you and you have the money to do it, then go for it. Don't try and time the market. Set a budget, know what you can afford and find something you can see yourself in for the long-term. I am very happy with my house, even if it costs less today than when I bought it.
At PWR we help many couples decide how much home they can afford to buy and if it is financially the right time for them. If you want help looking at your home purchase and how it fits into your entire financial picture:
Planning Within Reach, LLC (PWR) is a fee-only and fiduciary wealth management firm offering one-time comprehensive financial planning, ongoing impact-focused investment management and tax preparation services in San Diego and nationwide. PWR is a woman-owned firm that specializes in busy professionals and impact investors. Planning Within Reach, LLC and their advisors do not receive commissions and do not hold any insurance licenses or brokerage relationships.