Advice from those over 100k miles

vtec to vvel

Legend has it that OP is still debating his options.

On a side note, now is a really bad time to buy and/or to get into unnecessary debt. Interest rates have gone up so borrowing will be alot more expensive and you would qualify for less of a loan (provided you qualify at all). Prices have gone up due to inflation AND due to global supply issues and shortages of supplies and parts needed to build (i.e. semiconductors). High rates + high prices = does not make any sense to make big purchases** in this current economic environment.

**The ONLY exception to this is if you are buying a home, in which case you are investing into something that will appreciate in value (esp. due to shortage in supply), rather than a car which will depreciate.

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EZT

This first sentence had me.

axmea?

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Tractionless

Bought our house for $140k, currently "worth" $511k, you really think that's going to appreciate? NEVER buy high, all consumables and real estate are currently high.

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Toys Not Tots

vtec to vvel

Given that just in the US alone, we are about 15 years behind in terms of underbuilding, yes, home prices are expected to continue to rise. There's simply not enough home supply to support the demand. COVID really helped home values to go up when the Feds slashed rates.

After the late 2000 housing crash, a lot of new home builders went out of business, and for the builders that were fortunate enough to stick around, they built cautiously and rightfully so. Around the housing crash came the Great Recession so people were scared to buy and banks were scared to lend, so home builders severely underbuilt new homes to ensure their financial stability (why build when it costs money to produce and no one is really buying and with the housing market crash, no one was really looking to buy).

Within these 15 years, households have grown significantly, but no where near the amount of homes available to support this growth. Simple supply/demand, you now have more buyers (even with raised rates) than actual homes available for sale. You have more competition now in terms of home buyers than before, esp. with COVID:

1. Existing home owners who want to upgrade (first-time home buyers cannot compete with this group simply because of the lack of equity)
2. Millenials and Generation Z have reached the age of first-time home buyers.
3. COVID: many companies offered remote work and many have flocked to FL (for political asylum, no state income tax, weather, etc.).

So yes, home values will continue to rise, maybe not as fast as during COVID, but unless the housing market crises somehow fixes itself fast with more supply, values will not decrease. You said it yourself that you went from $140K to $511K - this is a HUGE increase.

With your logic of not buying high, if you wait until rates go back down, you will be going through exactly what we just went through: HIGH competition, much more inflated home values, bidding wars, much more out of pocket costs to entice the sellers to accept your offer, etc.

If you buy high, the rates can always be refinanced when they drop, and you won't go through the bidding war nonsense. Renting rates are just as high, if not higher than mortgages, so which makes more sense:

1. Rent high with no equity building and pay 100% interest

OR

2. Buy high and build equity with the option to refinance rates when they drop

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vtec to vvel

As I mentioned previously, now is a bad time to buy a car and getting into unnecessary debt.

https://www.cnn.com/2023/04/02/cars/...s-inflation-dg

"This is one of the worst times to buy a car in decades. "

I have also said take the media with a grain of salt. What this article fails to address is the rise in rates. With current rates, qualifying for an auto loan will be harder and there is a very good chance that people will be qualified for a lesser amount than when rates were lower.

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