Why buy? Forced savings!

When people consider whether to rent or buy, they often consider the monthly expense of renting versus buying. They also love to think about whether the "market" is high or low, and of course, whether they're getting the house for a good price. Clients LOVE thinking about whether they're getting a good price. I get it.

One thing people don't always think about is forced savings.

Investment advisors will tell you that the best way to save for the future is to have savings be AUTOMATIC, rather than by choice. It's much easier to save money when it happens without you having to decide to do it all the time. Saving $50 extra one month is clearly less fun than a couple of Mets tickets. Putting extra money down is an extreme method of automatic savings. If you know yourself, and you won't save on purpose, this may be a great way to overcome that obstacle in your personality.

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If you find your bank account never going up, even when you get a raise or a bonus, buying is a great solution. When you buy, you are "saving" roughly 10% of your monthly mortgage in the form of equity. Over 30 years, these small self payments result in you owning your whole home. Even if you OVERPAY for the house, this practice, combined with an expectation of at least SOME increase in value over that time, can put you in a better position than if you wait for the "perfect" time to buy.