It doesn’t matter where you live in the U.S….the real estate market is scorching hot. And anytime you have a real estate boom, there’s a certain amount of pressure that bubbles up to the surface for younger buyers – particularly first-time buyers.

1. Historically low interest rates (with threat of rising rates)
2. Rapidly appreciating real estate values
3. Social media frenzy (social pressure)
4. Fear of missing out

Anytime you have financial pressures and social pressures converging, there’s a possibility for a dangerous outcome. 

Buying a house is not bad (and can be very smart), but here are some reasons it might not be right for you...right now:

• Renting offers more flexibility
  • Moving when you own a home is a pain + it’s expensive (8 to 10%)
  • With renting, you can move much easier when things change (job move, salary cutback, growing family, etc.)
• Renting requires no maintenance costs or unforeseen expenses
  • If something breaks, it’s on your landlord
  • Less stress
• Renting offers access to amenities
  • Pool, fitness center, business center, better location, etc.
• Renting requires no down payment
  • Buying a house can destroy your emergency fund
• Renting requires no property tax
  • Pennsylvania: 1.43% @ $300,000 property = $4,290/yr // $357/mo
• Renting insulates you from a crash
  • It’s not hard to see a bubble forming...do you really want to buy before the bubble bursts?
• Renting requires cheaper insurance
  • Average homeowner’s policy: $1,249
  • Average renter’s insurance policy is $179
  • Savings of $1,070 ($90 per month)