It always shocks me how many of my young and experienced clients alike worry that buying a home may not be right for them, while they continue to rent. In my experience, property can only ever be a great investment, as long as you have the right advice and an agent you trust. However, considering I see this skepticism often, I wanted to compile a list of common reasons I hear.

EXPENSIVE MONTHLY PAYMENTS

The most common misconception I see is the belief that mortgage payments are very high, when in reality these payments can be and usually are more affordable than typical rental costs. Yes utilities are something to consider, but if you currently pay in excess of $800 monthly for your living arrangement you can expect to find your new cost of living very appealing.

LONG TERM INVESTMENT

People are stressed these days, young people in a competitive job market, a lot of you starting families, are under a lot of pressure to make ends meet. You want to make the right financial choices, but a 25 year mortgage to pay before you own your home is not very appealing when you could improve your quality of life in so many other ways by spending your potential down payment on other things, right?

Well the truth is, every month that you pay rent, you hand your hard-earned money over to someone else. When you pay a mortgage each payment you make immediately becomes asset value in your property, value that, at any term renewal date, you can easily apply to refinance (borrow against). In other words, by investing in a home, you can turn your otherwise wasted monthly bills into a savings account that you can cash in on in a matter of 5-10 years depending on your product.

THE MARKET FLUCTUATES AND I DON\'T KNOW IF NOW IS THE TIME TO BUY

This is a concern expressed often, but I feel it comes from a misinformed source. It is wise to be aware of market value and to buy when the value is increasing, however, investing in a property that might depreciate in value is far more valuable than investing in nothing at all, that is, when you are investing borrowed money. The point is, unless you're paying cash for your house, or buying it with the intention of renovating and reselling, you aren't going to walk away with less money even if the market does come down.

WHAT IF MY PROPERTY IS DAMAGED?

A rational fear, nobody wants to scratch the paint on the car the haven't paid off yet, and why would a house under loan be any different? This one is easy, you can't get a mortgage without insurance. It is mandatory and of course this means the insurance company will want to verify the integrity of the house as well. You will be well protected even in disasters beyond your control. 

The list goes on but I think this covers the main ones. Clients like to throw me horror stories about terrible things that have happened to relatives, or that they saw on TV. People losing their homes to natural disasters, or losing their shirts to astronomical interest rates. I don\'t mind hearing these stories and helping put a buyer's mind at ease, but to be clear, there is always an extenuating circumstance for the misfortune that occurs, and I believe that circumstance falls to misinformation. That's why I take pride in my work, I'll never let one of my clients walk away with a dangerous investment. The lender doesn't care, so it's my job to keep you safe.

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