“If you’re stuck in your house and can’t afford to do anything else, it’s not a good buy,” Meaike says.
As the Federal Reserve’s work to control inflation has sent mortgage rates soaring, many are wondering if now is the right time to buy a home. Amid rising prices and confusion, real estate mogul Shawn Meaike spoke about the factors people looking to buy a home should consider. “If you’re stuck in your house and can’t afford to do anything else, it’s not a good buy,” Meaike told Fox News Digital.
He also talked about how potential homeowners should make sure they are okay with the amount of income they would be available to spend each month if they take the leap. “What makes me nervous in the world today is how many people have chained themselves to their homes. They can’t afford to buy it,” she said. He talked about how people should think carefully and calculate how much they will have to spend after deducting the mortgage, interest, taxes, insurance and other expenses.
He also says that many Americans today don’t realize that living in smaller spaces is the optimized option. “Everyone says, ‘It’s my first house,’ except they want more than they can afford. So what money will they have left at the end of the month? Do your numbers,” he said.
Meaike himself has followed these steps. He began investing in rental properties when he was 20 years old and later accumulated many properties that helped launch his successful career. He “ran companies that made tens of millions of dollars a year and lived in a house in places people didn’t want to visit.”
He talked about how he came from humble beginnings and had no resources to begin with. “I worked hard to make money,” she tells Fox Business. She also talks about how buying a house requires sacrifices. “Sit down and talk about it and figure out what you’re willing to give up,” she said, noting that young couples need to have “important conversations.”
It also emphasizes the importance of asking tough questions like: “How stable are both of your jobs? How stable are they? If they are stable and you’ve been there, and you feel good about it… but could you live with a single income or a reduced income?” he continued. “So, I think those are the questions you should ask yourself when you’re looking for your first purchase.”
According to Bankrate, other factors to consider are your credit score and your down payment savings. Mortgage rates have been volatile lately, topping 8 percent after October 2023 and then falling back to 7 percent before rising again.
Therefore, regardless of the advice, Meaike also believes that waiting is the right option considering the current scenario. He suggests people use the money they’ve set aside for down payments on low-risk investments until rates drop.
