A good chunk of folks may think buying a home is the only option–especially when you have a family. Sometimes though, renting a home might be a better option. This post goes over the factors for each and hopefully helps you decide if renting or buying is your move. Maybe even help friends or family decide on what to do.
Why to BUY:
Before thinking about buying:
- Debt – Are you out of student loans or consumer debt? This is key to be able to pay for a house, but also, allow lenders to see if you can afford a home.
- Emergency Fund – If you got let go of your job today, how long would you be able to still pay for monthly expenses such as a mortgage and bills? Especially while looking for work?
- Down Payment – Although you do not always need a down payment to buy a home, if you have a safe credit score and money saved up, a down payment is a must.
- Time – Do you plan to stay in the home for more than three years?
- Renovations – Do you want to have control of the look and feel? Have space that you can adjust and build or break down?
If any of those you answered no, then buying a home may not be in your best option at this time.
Why to RENT:
- Debt – Are you paying your student loans or credit cards off? Can you still afford to use your paychecks to pay the debt and pay for rent? Make sure to look into what you can afford with the loans and debt in mind. Try looking into a cheaper apartment in order to save and get out of debt.
- Travel – You travel a lot for work. Take into factor if you need to commute for long distances of travel a lot for work. Just in case you need to cancel your lease or choose a shorter lease.
- Plan – Buying a house is a huge commitment mentally, emotionally, and financially. Sometimes renting is not just easier, but also safer. Never feel rushed to buy a home or make a large buy commitment if you know you are not ready.
It is always important to seek a professional on where you stand financially, and what are the best housing needs for your situation. Contact HomeTeam4u to speak with a professional for free to help you get to where you want to be. AskUs@HomeTeam4u.com