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Consider your decision to buy a home wisely.
Key points
- Home prices have been rising during the pandemic, with prices increasing faster than income.
- Suze Orman warned this could make purchasing a property potentially dangerous.
- Research the total costs of homeownership before you try to buy a home, to make sure you can afford it.
Buying a home can be a great investment. As you pay down your mortgage, you will build equity and eventually acquire full ownership of a valuable property. Your property value could also increase, so your net worth would go up because the asset you own would be worth more.
But purchasing a property is not always a smart financial move — especially if you overpay for it or you can’t afford it. And because of current economic conditions, Suze Orman warns that there are big potential risks to purchasing right now.
Orman has cause for concern when it comes to current home prices
In mid-summer, Orman offered some advice for people who were considering buying a house. “Buying a home has always been a big financial step, but the stakes right now border on dangerous if you’re not smart and careful,” she said.
Orman said the risk was high as a result of…
