TO BUY OR NOT TO BUY
At some point, something will make you wonder whether to buy a home. The decision to go from renter to homeowner is quite a game changer. Therefore it’s essential to really take a look at your current situation, and consider your options moving forward. It’s worth noting, that only you know what is best for you and your family.
Buying is a smart choice for many people, but it isn’t always the best deal for others, depending on the current market where you live and factors such as how long you plan to stay in your home and the size of the home you want to purchase compared to where you’re renting. Before you commit to buying, factor in the following points:
ARE YOU BETTER OFF RENTING?
Deciding whether to rent or buy is a big decision that requires serious “Where am I now?” and “Where am I going?” sorts of questions. It might be best to keep renting if you want to maintain flexibility for personal or professional reasons, or if jumping into more debt right now takes you out of your comfort zone. Maybe you’re just not ready to face the responsibilities of home ownership: repairs, upgrades, maintenance, yard work and all the rest. Even thinking about the difference between cleaning an 800-square-foot apartment and a 2,400-square-foot house can make you want to take a seat and a deep breath, but all in all with a little contemplation and reviewing your circumstances, you can make an informed decision.
IS A HOME AN INVESTMENT?
Yes, and 65% of Americans have chosen that they would rather put their money toward equity in their property instead of giving it to a landlord. While that math makes sense for many — especially those who plan to stay long enough to pay off their mortgage entirely — nobody can predict whether home prices will rise or fall in a given time frame, so don’t count on your home to be a cash cow. On the other hand it can potentially and significantly increase your leverage financially as you continue to grow your assets.
CAN YOU HANDLE THE RESPONSIBILITY?
There’s no landlord coming to save the day when things go askew. Are you handy enough to deal with maintenance issues when they arise? Do you have a small reserve set aside for emergencies? These are questions to consider when shifting from renter to owner. If you think you are ready for the adventure, then let’s get into what that like financially, and what you need to consider as you prepare to present yourself before lenders.