A short first-person YouTube monologue advising prospective homebuyers not to wait for interest rates to drop. The speaker quantifies how waiting can cost roughly $90,000 over five years using a worked example that combines home price appreciation (3%/yr), mortgage principal paydown, and tax/interest deductions.
Waiting to buy a house could cost you $90,000. Let me explain. I know, I know. You're waiting for interest rates to drop, but so is everybody. Here's the part they don't tell you. Every single month, while you wait on the sidelines with the crowd of other buyers that are waiting, house values keep going up. Let's say you're purchasing a $400,000 house and the housing market goes up just a modest 3% year over year. The next five years, that'd be $12,000 and change. That $400,000 house goes up over the next five years. That's $63,000 that you would have missed out on. And then on top of that, instead of paying just 100% of your housing payment, you get nothing back. You would have been putting it into the principal of your housing payment with the mortgage, and you would have gotten $15,000 paid off. The balance of your mortgage, that takes the total of 63,000 to 78. And there's tax benefits to owning a property you could have written off. Taxes and interest is another $12,500 on average over the next five years. That takes you to $90,000 saved. Don't think about timing the market. Think about time in the market.
