Tag Archives : first time home buyer

Did you know the real estate market affects you, even if you’re not planning to move or buy a home? Whether you’re a homeowner, renter, or just curious about the economy, the housing market has a ripple effect on everything from personal finances to the broader economy. Understanding these trends can help you stay ahead and make smarter decisions for your future. Curious how? Let’s dive in!

Here are answers and my predictions to four of the most common questions we’re hearing right now:

When Will Mortgage Rates Come Down?
Mortgage rates are influenced by the Federal Reserve’s monetary policy, overall economic conditions, the labor market, and even the geopolitical landscape. Rates have risen as the Fed works to combat inflation. While there’s no exact timeline, many experts suggest rates could stabilize or decrease once inflation is under control and the economy shows consistent signs of improvement. Some predict this could happen in 2025, but it ultimately depends on economic data and future Fed decisions.

For buyers, waiting for lower rates might not always be the best strategy. Acting strategically—such as locking in today’s rates—can make sense, especially as high rates have reduced buyer competition. This often means better negotiating power when purchasing a home.

My prediction? Mortgage rates likely won’t meaningfully reduce until 2026.

When Will Home Prices Come Down?
In short, they won’t—at least not significantly. Housing prices are driven by supply and demand. Currently, most markets in our area face a shortage of inventory, which keeps prices elevated. For prices to drop, we’d need a substantial increase in supply or a major drop in demand. However, cautious builders, a lack of large parcels of land, and homeowners holding onto their low mortgage rates make widespread price declines unlikely.

What we might see instead is a slower rate of appreciation, which offers buyers some relief but not a complete reversal of prices. This environment creates opportunities to purchase at more reasonable valuations with less competition, reducing the risk of buying at a market peak. It’s also a good time to explore long-term rental investments.

My prediction? Our area will return to a normal appreciation rate of 4–5% by 2025.

Will the Housing Market Pick Up Next Year?
The housing market’s trajectory in 2025 will depend on economic stability and consumer confidence. If mortgage rates start to decline, we could see increased buyer activity. Additionally, pent-up demand from buyers who paused their searches due to high rates or election uncertainty could drive new market momentum. Many of these buyers are waiting on the sidelines, ready to jump back in when conditions improve.

My prediction? 2025 will see more home sales than 2024. I do not foresee it as a boom, but
a higher volume than this past year

Is Now a Good Time to Buy?
A market crash like 2008 is improbable. The current market is underpinned by strong fundamentals: tighter lending standards, significant homeowner equity, and sustained demand. While there are challenges —such as affordability issues due to higher prices and rates — these don’t equate to a crash. Instead, the market is undergoing a correction, with cooling in overly hot areas and a shift toward more balanced conditions.What this looks like now is a home selling process that involves negotiation on both sides, more balance between a buyer and seller market. The market will always have fluctuations and instead of fixating on timing the market, focus on securing a home that fits your needs and budget. For both buyers and sellers, this is a time to work closely with real estate professionals to navigate the evolving landscape.

My prediction? While the market presents challenges, strategic buyers who act now can benefit from reduced competition and position themselves for long-term appreciation and stability.

Final Thoughts
The real estate market is always changing, influenced by everything from the economy to politics and even social trends. While rising rates and limited inventory might feel like obstacles, they also open the door to unique opportunities for savvy buyers and investors. By staying informed and understanding the bigger picture, you can make confident decisions—whether you’re searching for your dream home, exploring investment options, or just keeping an eye on the market. Want to know how current trends could impact your plans? Reach out to us today, and let’s discuss your goals!

Buying your first home is an exciting milestone, but it can also feel overwhelming if you’re unsure where to start. Even if you think you’re not ready, proper preparation can help you jump on the right opportunity when it comes. As experienced real estate agents, we’ve had the privilege of helping countless first-time buyers navigate this process. This guide will walk you through what to expect and how to prepare for the journey ahead. Let’s dive into the key steps of buying your first home!

Step 1: Assess Your Financial Situation to Determine Your Homebuying Budget
Before you start dreaming about your ideal home, you need to understand your financial situation. Knowing your credit score, monthly budget, and how much you can realistically afford are essential first steps. Take the time to review your financial standing. This means looking at your savings, debts, and any other expenses that may impact your mortgage eligibility.

A great starting point is to connect with a lender. They can help you figure out how much you can borrow and set realistic expectations before you begin your house search. Pre-approval strengthens your offer later and shows sellers that you’re serious about buying.

Step 2: Get Pre-Approved for a Mortgage to Speed Up the Process
Getting pre-approved for a mortgage is crucial in today’s competitive market. It shows sellers that you are a legitimate buyer and helps you set a concrete budget for your house hunt. The pre-approval process involves submitting financial documents such as tax returns, pay stubs, bank statements, and employment verification.

If you haven’t yet chosen a lender, don’t worry! We work closely with trusted mortgage professionals who specialize in helping first-time buyers. Getting pre-approved also means you’ll know exactly what kind of mortgage you qualify for, giving you confidence as you start your search.

Step 3: Identify Your Needs vs. Wants in a Home
Now comes the fun part—imagining what your new home will look like! But first, you’ll need to distinguish between your “must-haves” and your “nice-to-haves.” For instance, do you need three bedrooms, or could you get by with two? Is a large backyard essential, or could a smaller one work if the house is in the right neighborhood?

Listing your needs and wants helps streamline your search and ensures you don’t get distracted by features that aren’t necessary. This will keep you focused and prevent any future regrets.

Step 4: Start Touring Homes That Fit Your Criteria
House hunting can be one of the most enjoyable parts of the process, but it can also be overwhelming. We can guide you through various neighborhoods and homes that meet your criteria. As exciting as it can be to tour different properties, remember to stay grounded in your budget and priorities.

It’s normal to have to make compromises, but don’t feel pressured into buying a home that doesn’t meet your most important needs. With patience, you’ll find a house that checks off most of the boxes!

Step 5: Make an Offer on Your Dream Home
Found the perfect home? Great! Now it’s time to make an offer. This is where things can get a little nerve-wracking, but don’t worry—we’re here to help you craft a competitive offer based on current market trends and property value.

We’ll negotiate on your behalf, whether it’s the final purchase price, closing costs, or contingencies, to ensure you get the best possible deal. And remember, it’s not just about offering the highest price but also about presenting the most appealing terms to the seller.

Step 6: Conduct a Home Inspection Before You Finalize the Deal
Once your offer is accepted, the next crucial step is the home inspection. A professional home inspector will assess the property to ensure there are no major structural or mechanical issues. The inspection will give you peace of mind and help you avoid any unwanted surprises after closing.

If the inspection uncovers any problems, we’ll help negotiate repairs or price adjustments to address these issues. After this, you’ll be ready to move forward with the closing process.

Step 7: Close the Deal and Get the Keys to Your New Home
The final step is closing, where you’ll finalize your mortgage and sign all the necessary paperwork. Once everything is completed, you’ll receive the keys to your new home.
Congratulations, you’re officially a homeowner!

Final Thoughts: Your Journey to Homeownership
Buying your first home can feel intimidating at times, but with the right preparation and guidance, it’s one of the most rewarding experiences. From setting a budget to closing the deal, each step is essential in making your homeownership dreams come true.

If you’re thinking about taking the plunge or simply want to learn more about the process, feel free to reach out. We’re here to guide you every step of the way, turning your homeownership dreams into reality!

Frequently Asked Questions (FAQs)

1. How much should I save for a down payment on my first home?
Typically, first-time homebuyers should aim for a down payment of at least 5% to 20% of the home’s purchase price. However, some loan programs offer lower down payment options.

2. How does getting pre-approved for a mortgage help?
A mortgage pre-approval helps you understand your borrowing power, sets your budget, and strengthens your offer when bidding on a home.

3. What should I prioritize when house hunting?
Focus on your needs first—such as location, size, and budget. Wants like extra space or luxury finishes can come second to make sure you stay within budget.

4. How long does the home-buying process take?
From start to finish, the home-buying process typically takes 30 to 60 days, depending on factors like loan approval and the local housing market.

5. Is a home inspection necessary?
Yes! A home inspection ensures there are no hidden issues with the property that could cause problems later. It’s a crucial step before finalizing any purchase.

In this Agent Spotlight video, we introduce Eveline Matthaeus, a dedicated buyer’s agent on the Curtin Team. Eveline brings a wealth of professional expertise to our team, with a background in marketing from Unilever and management advisory from Andersen Consulting. Her unique specialization in assisting expats stems from her personal experience of relocating her family from Switzerland, giving her invaluable insights into the challenges and stresses associated with such moves.

Fluent in four languages, Eveline excels at connecting with people from diverse backgrounds. Her love for data analytics, paired with her honed negotiation skills, provides her clients with a strategic advantage in the competitive real estate market.

Having embraced Georgia and its warm Southern hospitality, Eveline enjoys exploring the area with her husband Marc and their three kids, often accompanied by their beloved rescue dog, Youpi. Whether she’s leading them on adventurous hikes or diligently maintaining her backyard oasis, Eveline brings passion and dedication to every aspect of her life.

Don’t forget to like, comment, and subscribe to the Curtin Team channel to stay updated on more enriching content like this!

WATCH THE FULL EPISODE HERE

Hey Kids,

As you start exploring the world of real estate investment, I want to share some insights I’ve picked up over the years. Our hometown of Roswell offers opportunities for smart investments. Here are a few tips to help you navigate the real estate landscape and find your own path to success.

Roswell is famous for its beautiful historic homes, top-rated schools, and cool vibe. When thinking about investments, it’s important to understand what makes this area special. Check out market trends, property values, and neighborhood vibes. Keep an eye on new businesses, infrastructure projects, and zoning changes that can boost property values.

You’ve probably heard this a million times, but it’s true: location is everything in real estate. In Roswell, great locations often mean being close to excellent schools, parks, shopping centers, and restaurants. Look for properties in areas like Historic Roswell or nice established neighborhoods. A prime location can make a big difference in rental income and property value.

While Roswell has plenty to offer, it’s smart to diversify your real estate portfolio. Think about a mix of property types—single-family homes, townhouses, even commercial properties. Each type comes with its own perks and risks. Diversifying helps protect against market ups and downs and gives you a balanced approach to building wealth.

When looking at potential investments, check out the condition of the property. Older homes in Roswell might need some work, but they can be real gems if renovated properly. Look for places with room for improvement, like cosmetic updates or expansions. Investing in well-maintained properties or those with high potential can really pay off.

Tap into the expertise of local Realtors (like your ol’ dad here), property managers, and contractors. Their knowledge can give you valuable insights and help you make smart decisions. Networking with these pros can also lead you to off-market deals and opportunities you might not find on your own.

While short-term gains are tempting, real estate is often most rewarding when you think long-term. Consider how property values might appreciate over time and look for areas with strong growth potential. Buy real estate and wait, time will do the rest. Even if you don’t get a screaming deal when you purchase,over time you’re investment will continue to increase. Roswell’s mix of historic charm and modern amenities makes it a great place for long-term investment. Hold onto properties that are likely to grow in value and provide steady rental income. Don’t be tempted to sell with market ups and downs, stay the course.

The real estate market is always changing, so staying informed is crucial. Keep up with local market trends, economic factors, and zoning law changes. Attend local real estate seminars and join investment groups to stay connected and learn new things. Being adaptable and ready to tweak your strategy based on market conditions will help you stay ahead.

Financing is a big part of real estate investment. Explore different options like traditional mortgages, home equity loans, and private lenders. Knowing the terms and conditions of each option and developing trusted relationships with lenders will help you make the best financial decisions. Keep an eye on interest rates and loan conditions, as they can greatly impact your returns. Sometimes it makes sense to buy and lock in a longer term low rate even if the price isn’t great.

Real estate investment isn’t just about making money; it’s also about improving quality of life. Think about how your investments can benefit the community and enhance your own quality of life. Treat your tenants and property well and this will pay dividends over time and lead to sustainable and rewarding investments.

Investing in real estate offers a unique mix of opportunities and rewards. By understanding the market, focusing on prime locations, diversifying your investments, and leveraging local expertise, you can build a successful real estate portfolio. Stay informed, think long-term, and remember the importance of quality of life. With these principles in mind, you’ll be well on your way to making smart and rewarding real estate investments.

I’m so proud of you for taking this step. Remember, this journey is as much about learning and growing as it is about financial success. Trust your instincts, stay curious, and never hesitate to ask for advice. Don’t wait to buy real estate, buy real estate and wait. Here’s to your future success!

With love and wisdom,

Dad

In this exclusive interview, Joanne Curtin sits down with one of the brightest stars on the Curtin Team, Agent/ Partner Shari Sautner. Shari’s journey in the real estate industry has been nothing short of remarkable, and in this spotlight interview, she shares her insights, experiences, and the key role that joining the Curtin Team has played in her business’s impressive growth.

Shari Sautner, a dynamic and passionate real estate agent, has made significant strides in the industry since becoming a part of the Curtin Team. With her dedication, knowledge, and commitment to providing exceptional service, Shari has not only thrived but also set a shining example for aspiring real estate professionals.

In this candid conversation, Joanne delves into Shari’s personal and professional journey, exploring the pivotal moments that have shaped her career. From the early days of building her client base to the strategies and support that the Curtin Team has provided, Shari shares invaluable tips, insights, and real-world experiences that have led to her remarkable success.

Don’t forget to like, comment, and subscribe to the Curtin Team YouTube channel to stay updated on more enriching content like this!

Joanne Curtin Interviews Curtin Team Agent Partner, Shari Sautner

WATCH THE FULL EPISODE HERE

Join your host, Joanne Curtin, as she takes you on an exclusive tour of new construction homes and townhomes in Barrington Place, Ecco Park, and Millstone Park. Can you guess the price?

WATCH THE HOME TOURS HERE

House #1- Barrington Place home, built by Brightwater Homes, is in historic Roswell near The Mill Kitchen and Bar and is a net zero home (Net zero means the home generates the renewable power to match the needs of the home). Did you know that Roswell is a certified Green Community – platinum level?

Townhome #2 – Ecco Park is located in Alpharetta 30022. This townhome community is being developed and built by The Providence Group.

Townhome #3 – Millstone Park townhomes are located near Deerfield Parkway, Alpharetta. These three story townhomes are conveniently located near Exit 11 (GA-400) and close to shopping and restaurants.

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Tom Curtin, CEO of the Curtin Team, and Ben and Candice Thorton from Capital Mortgage Solutions, LLC, actively discuss cooperative buying and aiding first-time homebuyers. They dispel myths regarding down payments and explore alternative financing methods. It is revealed that a primary residence can be purchased with as little as a 5% down payment, and some loan programs mandate even less. Furthermore, they delve into the possibility of gift funds, which parents, friends, or close family members can offer. Conventional guidelines dictate that gift funds must originate from a direct family member or fiancé. 401k loans are also an option for individuals who lack a family member or employer to help with the down payment. Borrowing from a 401k to make a down payment on a home has no impact on the debt-to-income ratio.

Check out our previous blog post about the real cost of waiting to buy –
https://www.curtinteam.com/the-real-cost-of-waiting/

Selling a home is a big decision, and one of the most important aspects of the process is determining the right price. Unfortunately, some sellers make the mistake of pricing their homes too high, which can lead to a host of problems down the line. In this blog post, we’ll explore some of the reasons why people price their homes too high when they sell them, and the potential consequences of doing so.

1. Testing the Market
One of the most common reasons why people price their homes too high is because they want to “test the market.” In other words, they want to see if there are any buyers out there who are willing to pay more than what they think their home is worth. While this may seem like a logical strategy, it can backfire in a big way. Overpricing your home can make it less appealing to buyers who are looking in your price range, and it can also turn off potential buyers who might be willing to pay more for a home that is priced appropriately. For example, a home that is worth $600K and the list price was $600K, it would be more likely to get that amount. However, if you listed a home that was only worth $575K for $600K, price reductions might eventually lead to a sale price of only $540K.

2. Leaving Room for Negotiations
Another reason why people may overprice their homes is that they want to leave room for negotiations. They may assume that buyers will try to negotiate the price down, so they start with a higher price in order to end up at the price they really want. However, this strategy can also be counterproductive. If your home is significantly overpriced, buyers may not even bother making an offer, or they may assume that you’re not serious about selling.

3. Believing a Higher List Price Will Result in a Higher Sale Price
Some sellers mistakenly believe that if they list their home at a higher price, they will end up selling it for more money. However, this is not necessarily the case. Buyers are savvy, and they will typically do their research to determine what a home is really worth. If your home is priced much higher than other similar homes in the area, buyers may simply choose to look elsewhere.

4. Misinformed About the Market
Finally, some sellers may overprice their homes because they are misinformed about the market. They may have received bad advice from a friend, neighbor, or another realtor who is not familiar with the local market conditions. It’s important to work with a realtor who has experience selling homes in your area and who can provide you with accurate information about pricing and market trends.

So, what are the consequences of overpricing your home? The most obvious consequence is that your home may sit on the market for longer than it should. This can lead to a variety of problems, including:
• Reduced interest from buyers
• Fewer showings
• Lowball offers
• A lower eventual sales price

In addition, if your home sits on the market for too long, it can start to develop a stigma. Buyers may assume that there is something wrong with the home, or they may wonder why it hasn’t sold yet. This can make it even more difficult to sell the home in the future.

In conclusion, pricing your home appropriately is crucial if you want to sell it quickly and for a fair price. While it may be tempting to overprice your home for any of the reasons mentioned above, it’s important to resist the urge and work with a realtor who can provide you with accurate information about pricing and market conditions. By doing so, you can avoid the pitfalls of overpricing and increase your chances of a successful sale.

New home construction has come a long way in recent years with a focus on space design, energy efficiency, and environmentally-friendly materials. Here are the latest features in new home construction:

Large Mud Rooms (aka Family Foyers) – Large mud rooms have extended their footprint in new homes. Previously, mud rooms were often limited to just a hallway with a built-in, but now they are taking on a larger role by accommodating seating, sometimes with a desk to pay bills, and drop zone for mail. Think about it as a room to hide all the mess when you or your children walk in the door – there’s a place to drop shoes, coats, backpacks, laptops, papers, mail and even to take a minute to sit and relax before entering the main house. All of this is usually hidden behind a sliding door to create separation and the ability to close off this area from guests seeing the mess.

Heated floors – Heated floors are especially popular in the primary bathroom. Making cold tile warm in the winter is a game changer! Heated floors operate on a timed thermostat so you can program the heat to match your schedule. Waking up and the bathroom is already toasted, no longer cringing when your bare feet hit the cold floor and scrambling to get your slippers on. Once you have them, you’ll never want to be without them.

A Hidden Room – Childhood dreams come true! Having a hidden room to relax and unwind or to safely retreat into if needed, these rooms are being added behind bookshelves just like in the movies! Often found in an office, a walk-in closet, or primary bedroom, hidden rooms can serve a variety of purposes like hiding a prized and valuable collection, a hidden entertainment area, or a reading and relaxing spot. Another example is the understairs space that often goes unused, which can be turned into a hidden fun playroom for kids. We’ve even seen a hidden hatch door in the floor that led to a wine room underground. The possibilities are endless.

Environmentally Friendly – Environmentally-friendly building has become a favorite for energy efficiency, with an attainable and clear ROI and because of increased environmental awareness. Homeowners want to be a better steward of the planet, and this not only saves homeowners money on energy bills, but it also helps to reduce the overall carbon footprint of the home. There are many ways builders are incorporating this into their plans, such as:

● Solar: Your builder can prepare the roof when built for solar panels. Installing mounts and preparing for wiring during construction will save you money for when you do install solar panels in the future.
● EV Ready: Your builder can ensure that your home has enough electrical service in your garage and install chargers during construction.
● Battery Ready: Equipping your home with solar batteries allows you to capture the energy produced with solar (instead of or in addition to sending it back to the grid) and then use it as you need it, either during a power outage or on cloudy days when solar may not be sufficient.
● Geothermal Systems: According to the US Department of Energy, a Geothermal heat pump can mean a 25%-50% reduction in energy consumed compared to a traditional system that uses air. In addition to the electricity savings, geothermal systems are eco-friendly because they don’t burn gas during operation. And because there’s no combustion, there’s no admission of carbon dioxide, carbon monoxide or other greenhouse gasses. Because these systems are much quieter to operate, it also saves on noise pollution. If the builder is already digging for a septic for your home, ask about the possibility of adding geothermal during the dig.

There has been a significant shift towards the use of environmentally-friendly building materials. This includes the use of recycled materials, low-VOC (volatile organic compound) paints and finishes. Eco-friendly building materials cut down on greenhouse gas emissions, and conserve natural resources; all while improving water and air quality. Examples are Low-Formaldehyde Insulation, Low-VOC Drywall Adhesives, Low-VOC Paints and Carpets, ENERGY STAR® Low-E Windows, low-flow plumbing fixtures, dual flush toilets and LED lighting packages.

Hidden Outlets – These can be an afterthought, but with planning ahead and smart design, your outlets don’t have to take away from your beautiful kitchen backsplash. Electrical outlets can be placed under the cabinets so they remain hidden from view and still easy to access. There are also countertop pop-up outlets that only appear when needed or removable tile plates that can keep the outlet masked when not in use. With the amount of device charging we need now, consider a charging station drawer. This drawer will have a power strip at the back of it and you can keep unsightly wires and devices out of view while charging. Perfect in the kitchen, bathroom and built-in desk drawers.

Large Kitchen Island – Kitchens are the heart and center of the home. Large kitchen islands serve a multitude of roles, from prep station to homework spot to eating area. Large kitchen islands have an aesthetic impact on the room as well. Popular design trends include the waterfall edge where the countertop continues down the side of the island all the way to the floor or the simpler English cottage style with tongue and groove paneling. Large dramatic hanging light pendants and gorgeous sink hardware help showcase the island as a centerpiece of the kitchen.

Floating vanities – Floating vanities add a contemporary feel and modern look. These shorter base cabinets appear to “float” on the wall instead of sitting directly on the floor. They can make small spaces look larger and open up the room. The downside is less storage space. To add to the floating visual, under-cabinet lighting is a popular added feature, this lighting below the floating cabinetry also adds to the “floating” appearance of the vanity.

Dog Wash Station – Dog owners are spending more and more on their dogs every year. A recent survey cited that one of the main reasons Millennials purchased a home was because of their dogs. So, it’s no surprise that new features specifically for dogs are becoming standard. We’re even seeing dog watering stations with a faucet to refill the water bowl.
Locating a dog bath in a mud room, laundry room ,or garage is a practical solution, especially if your space has exterior access. Putting everything you need right by an exterior entrance; your home will remain better protected from tracked-in dirt. Ideally your wash station has a faucet with a handheld sprayer attachment and drain area. Plus, it’s more versatile than you might think. You can use it not only for your furry friends, it’s also great for washing off muddy kids or dirty shoes.

Built-In Speakers Inside & Out – Bring on the tunes! If you already know where you want to put the sound system and entertainment center, talk to your builder about installing built-in speakers in those rooms. You’ll save yourself valuable floor or wall space and have the luxury of having your house literally filled with music.

Whether you’re building a new home or remodeling an existing one, these trends are worth considering to stay ahead of the curve and to optimize your space in a modern, fashionable way.

If you’re considering continuing to rent, maybe you think it’s best to wait until prices come down, or maybe you’re waiting for interest rates to come down. Or maybe you just don’t see the value in taking on the responsibility of owning a home. But did you know home ownership is one of the largest factors in building wealth? It is the differentiator between those that bought and those that continue to rent. How big of a difference can it really make, you ask? Let’s look at the tale of two friends, Harry and Randy, and really dive into the numbers to see what a difference buying a home now and continuing to rent will make in a 7-year period.

Harry Homeowner just purchased his new home for $400,000. He used FHA financing and put 3.5% down, or $14,000. His loan would be $392,755 because of the up-front 1.75% mortgage insurance that gets rolled into the loan on FHA loans. His monthly payment would be:

Principal & Interest – $2,613
PMI – $273.42
Estimated Taxes & Insurance – $474
Total payment = $3,360.76

After 7 years, Harry will have paid $181,546.66 in interest and $34,171.22 in principal, leaving a loan balance of $351,829.02. Harry has gained $34,171.22 in principal paydown, which can also be looked at as a forced savings. But wait – it gets better. Harry will also gain equity. The average equity increase annually is 4% (in metro Atlanta, it’s been 5% average.) After 7 years at an average of 4% annual appreciation, Harry’s home is now worth $526,327. That’s a gain of $126,327. Adding in the principal paydown of $34,171, Harry is sitting on a nice $160,498 gain. Harry could access some of this equity through a Home Equity Line of Credit and perhaps purchase an investment property (smart choice Harry!) or decide it’s time to upgrade and roll those gains into a new home and start the process over.
Another scenario that would likely have occurred for Harry is that because of the gain in the property value and equity, the PMI would drop off – most likely Harry would have refinanced his house and the payment would have reduced by $300-$400, so Harry’s payment in year 7 would be estimated to be around $2,900.

Randy Renter is renting a cool two-bedroom apartment in a hip, walkable location for just $2,000/mo. Instead of making a mortgage payment, Randy is a disciplined dude and he is saving the difference in his rent payment and what his friend Harry is making in a mortgage payment. So he’s saving $1,360 per month.
Randy is smart with his money, and he’s invested it in a mutual fund and was able to obtain an average annual return of 12%. Randy would now be sitting on a cool $167,000.
Aha you say: “So buying is not the right move! I’d actually have more money by saving money by renting (assuming you’re as disciplined as Randy) and not buying.”
However, we didn’t factor in that rent continues to increase every year. So in reality, Randy’s fixed cost of living continues to increase, while Harry’s fixed housing cost is locked in (and likely reduced when he refinances). Let’s rerun this scenario factoring the rent increases and consequently the savings decreases for Randy.
Average rents increase by 6% per year in our area. Randy’s two bedroom apartment rent looks like this over 7 years:
Year 1 $2,000
Year 2 $2,120
Year 3 $2,247
Year 4 $2,382
Year 5 $2,525
Year 6 $2,676
Year 7 $2,837
At the end of 7 years, again Randy is super disciplined and did not touch any of his savings, he now has $138,855 saved.

Let’s compare.
Harry has $160,498 in equity/net worth.
Randy has $138,855 in equity/net worth.
Harry has a fixed monthly housing payment.
Randy also has a monthly payment that will continue to rise and is beyond his control.
Randy can buy too, but the same house Harry bought 7 years ago will cost Randy a lot more.
It has been said “the best time to plant a tree was 30 years ago, the second-best time is today.” The same can be said of real estate. Don’t wait to buy real estate, buy real estate and wait!