Here’s the math to work out. What is my expected rent, and will homes fall more than that during my rental term?

The answer to that currently is a resounding NO for the simple fact that homes have been appreciating at roughly 15%-25% the last couple of years and show no sign of letting up.

But let’s hypothesize that the economy self-destructs tomorrow. That’s a great recipe for cheap houses right? Sure, but if the last crash was anything to go by, it will take years for home prices to decrease significantly. And remember, you are spending rent every month while waiting.

People do not wake up and decide to sell their house for 30% less. It is a low, very long, and slow process. The last one took about 4-5 years. Plus, when home prices are tanking loans become very difficult to obtain… especially if like the last crash it blows up the financing sector. That’s one of the primary reasons home prices decrease!

Now there is some good reason to rent. Flexibility if you decide you don’t like an area for example.

Bridge loans are certainly a thing, however, you will need to qualify for both the bridge loan and the new mortgage which can be tricky.

What most people do in your situation is work to get pre-approved for a home loan without having to sell their current home, but their current home up for sale and take a contract with a long closing to allow time to find their next home, or pull equity out of the current home to make a downpayment or buy outright on the next home with plans to sell the previous home after closing.

You lose a lot of maneuvering room with having to new home purchase contingent on a previous home sale, and while it can be done is in no way preferred.