Just a quick thought I had on my mind, wondering if someone could clarify for me. So where I live, I have seen the same house sell for say 275k, and 1-3 years later sell for 305k. It seems every year or 2, real estate around here goes up a good amount. Heck, houses from 2000 that we're 95k are now going for 220k! So, my question is, is it really practical to suggest someone stay somewhere cheaper until they have a sizeable enough down payment for a house? Let's say a house is 200k and someone only has 10k to put down so they wait 2 years so they'll have 20k to put down. Well, in 2 years let's say that 200k house is now selling for 210k. Isn't that essentially negating their 10k savings over the past 2 years because the cost of the house has also increased 10k?
I'm just failing to see at this point why waiting to save for a down payment is a wise choice, unless the desired house or location hasn't increased in years. Seems inflation would always mostly negate the savings. Am I missing something?
This isn't my predicament, I'm actually doing very well w paying off our mortgage! Just a thought.