Buy now, buy later, what to do?

What are the options for buyers in todays real estate market with its ups and downs, persistent low inventory, and higher mortgage rates?

The choices are not easy. Here are some options:

1.- Buy now to avoid the possibility of higher mortgage rates and increasing property values.

2.- Wait for a possible decline in prices or interest rates or both.

3.- Rent until you decide it is the best time for you to move.

Within these three alternatives lie some considerations.

Rising mortgage rates make it difficult, especially for first time buyers who usually have a limited amount of cash available.  Buying now and using an adjustable mortgage rate can ease some of the financial cost. Be sure that you can afford those costs if you have to carry the mortgage for a few years. When the rates come down, refinance your house with a long-term mortgage to take advantage of the lower rates. Consider that you will have refinancing costs.   If the prices of property continue to increase this could be a good option.

Concerning renting a property, you must take in account that the rents can rise quickly.  That should be included in your cost estimation.

(Painting: Old Quebec in the rain from C Saratt)