Should You Buy or Rent Your Next Property?
Housing markets across the nation are picking up, and there are many more buyers on the market now than there were in years past. When you’re preparing to search for your next place to live, one of the biggest decisions to make is whether you should buy or rent. This debate is one of the biggest dilemmas people face when moving to a new location. Here are a few things to keep in mind:
How Are Your Finances?
Buying a home is expensive, and it can include more costs than you might initially think. If you want to buy, make sure you understand and can cover all the expenses, including the down payment and closing costs.
There are many great programs avail for first- time buyers with as little as one percent down. There are even some government state programs that offer down payment assistance! There are also some banks will also want anywhere from 1 to at least 20 percent of the purchase price as your down payment. If this is too much for your wallet to handle, renting may be the better option. It will all depend on a few factors.
What Is Your Employment Situation?
You should have a stable job if you intend to purchase a home. Lenders care about current income as well as the reliability of that income in the future. If you’re in danger of a layoff, or you might be looking for a new job soon, this may not be the time to buy a home. Focus on saving money and securing your next position so that when the time comes, you’ll be ready.
What Is Your Long-Term Plan?
Since buying a house is so expensive, you’ll want to live there for a while or rent the space to someone else. Either way, you’ll need to know exactly what you plan to do. If your plan is only set for the next few years, you’ll want to consider renting. However, if you’re ready to put down roots and start a family or begin a career in real estate management, buying a home is probably best for you.
Are You Prepared for the Responsibility?
There are plenty of financial benefits of owning a home. For example, a homeowner can build equity into his or her home. There are also financial responsibilities to consider, including taxes, maintenance, insurance costs, and liability if you decide to lease your property to someone else.
You shouldn’t make the decision to rent or buy lightly. If you are ready to buy, make sure the location makes financial sense. Many other variables go with homeownership and many of them cost money. Discuss your plans and options with your family and a financial advisor to make sure you are taking the right steps.
Whatever your plan may be, feel free to give us a call to discuss your options! We are able, ready and willing to help you!