One thing to remember is you are buying your first house and will move again in 6 years (on average for first time buyers). Buy what you can afford without stretching. You never want to be house poor. Your professional Realtor and / or mortgage expert can help you put together your house plan for the next ten years, a plan that had logical steps and should make / save money for you,
Many of my buyers are going to the new homes instead of resale. The demand there is also very high now, but I still think it is easier to buy a new home than a resale.
If you decide to go the new house route, make sure you take an agent with you so they can register you there. Take advantage of what your agent can provide you and register with an agent. The builder will pay your agent a commission so it costs you nothing.
I give my buyers a lot of inside scoop on how much the homes are going up in each phase, what the whole neighborhood resale homes are going for and if it makes sense to buy in that development. By getting an agent you have a lot to gain and nothing to lose.
I would suggest you work closely with a realtor you trust, and continue to consider both single family homes and condos. You may also want to consider expanding where you are looking to purchase. Perhaps there are communities you are not familiar with, that are more affordable.
Good luck with your search, and congratulations on becoming a future homeowner!
Alain Pinel Realtors
If you need to get a loan, then you can take advantage of the historic low interest rates --- imagine 3.75% for a conventional loan! Still shaking my head at how low it is compared to what the interest rates were in the past 40 years.
Take a look at this blog by Steve Harney who says that interest rates are projected to rise up to 4.4% by end of the year.
And about home ownership
Some things you should look into if you decide to buy a condo. What type of loan are you getting? If you're getting an FHA loan, some complexes are not FHA-approved. If you want to rent it out later --- does the condo complex have rules about renting units? Is there a quota?
Your last sentence pretty much sums it up! "At least I will not be wasting money on rent/leases."
Basically, when you're paying rent, you're paying someone ELSE's mortgage. It would seem the best decision to invest in your OWN portfolio rather than elsewhere.
Like Brian says, sit down with a Realtor to discuss your plan, your financial goals and come up with a workable solution! :)
It often makes more sense than renting.
You should sit down with a Realtor and discuss your future plans, price range, and goals and together come up with a plan.