prettybogle wrote:We are a family of 3, husband, myself and a daughter. We are now paying monthly rent $1300. This may go up atleast 100 for the next year. So i am debating to buy (or not buy) this house in middle tennessee. It is $535000 for 3600 sqft house. Lot size is 0.25 acres. I really appreciate any input, suggestions to help me decide to buy or just keep renting. My husband and I are both 35. Single income 130k. After 20% downpayment, we will be using all the cash we got so no emergency fund. Net worth is 450k.
You should buy house when the housing market is down and avoid buying when price is racing up. It appears that you're afraid if you don't buy a house now, price will continue to go higher. It's a classic example of buying high. The right question to ask is when will the housing cycle reach its trough? I would continue to save/invest and wait until the right time to buy.
You can also think outside of the box. Have you considered different locations? Different states/cities have their own economic cycle, which could affect house price. Take Houston for example, oil&gas industry is hibernating and house price is going down. This is your opportunity to buy. I'm seeing several people are taking a big hit because they were buying when the price kept rising just more than a year ago.