The decision to rent or buy a home should never be taken lightly. Each has its benefits and drawback and should be considered fully before making the decision. If you have been on the fence about deciding between renting and buying, here are four questions you should be asking.
1. Will I Be in This House Long?’
If you are only planning on living somewhere for a few years, or just are not sure of where you want to settle down, it might be a good idea to rent. However, if you know you will be staying in the area, buying can be a much more financially secure option.
2. What’s the Real Estate Economy Like?
The economy impacts nearly every area of our lives. Make sure you look at how things are going financially for the country and check out loan rates to make sure you are getting the best deal possible. This can save you thousands of dollars over the years!
3. Are You In a Renter’s or Buyer’s Market?
Check how things are going locally for you and see which market you are in. Consulting with a real estate agent or other financial professionals can help you decide which market is best for you to buy in.
4. Am I Financially Prepared?
Obviously one of the best things about being a renter is not having to pay for costly repairs and property taxes. While being a homeowner is a key investment, it is important to take an honest look at your finances to decide if you can truly afford to own a home. This includes all repairs, remodels, etc. If you cannot afford to cover those expenses with what you have now, it is probably not a good time to buy.