About
Owning a home is the American dream. But that dream can easily become a nightmare if new buyers dive in without being financially prepared. The real estate market is filled with pitfalls, and the aim of Frugal Real Estate is to help buyers (and sellers) navigate the various potential dangers.
In 2008 the real estate bubble that had building for some time finally popped, and along with it the equity in many homes people were counting on to fund their retirement, or their next dream home purchase. It was a sobering drop for most homeowners, but the ones hardest hit were those that overextended on their house purchase, or took advantage of the “creative” financing options pitched by lenders.
Hopefully we can return to the idea of investing in real estate from a frugal perspective, with the belief that overextending on a house purchase can turn what should be a blessing (a new home) into a curse.
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Hi,
I am looking for some real estate advice.
We live in an area where houses are very expensive and we cannot afford a single family home. We are currently renting a single family home. Our rental is a historic property owned by the community, so our rent does not pay anyone’s mortgage, just the costs associated with the upkeep of the property. Because of this, our rent is significantly lower than the average rent in the area, and definitly alot lower than what we would be paying for a mortgage. My question is, is it wiser to stay put here even know we are renting? Or to try to purchase all that we could afford, which would be a smaller condominium?