To Buy or Rent
Should I buy or rent? College grads, newly weds, relocating professionals, and other first time homebuyers have all asked themselves this question. There are pros and cons to renting, just as there are pros and cons to owning a home. The decision to purchase, as opposed to renting, is complex and based on numerous factors. According to the National Association of Realtors, nearly 80% of Americans surveyed believe buying a home is a good financial decision.
For most people, deciding to buy a home is the largest financial decision of their lifetime. Before making the jump into homeownership, potential home buyers should consider the “soft” lifestyle issues as well as the “hard” financial ones. The professionals at Jack White Real Estate have provided the following four financial and lifestyle questions to consider when determining if buying a home is the right decision for.
Do you have a steady income? The first question is whether or not you can afford to purchase a home. With good credit, stable income, and documented employment, it could prove to be a good financial decision. However, without them, it may be difficult to qualify for a loan. Often, it is just a matter of timing. Sometimes, the smarter financial choice is to rent, while working to improve your credit and saving for a down payment. Don’t hesitate to contact a real estate professional even before you’ve decided on buying a home. Along with your lender, our associates can answer and uncover any questions regarding the cost of homeownership.
Do you plan to own the home for an extended time? With good planning, a home purchase is one of the best investments you can make. With that in mind, it’s essential to understand that investing in a home is not like investing in a stock portfolio. Homes usually appreciate in value over time, while the homeowner builds their equity through monthly mortgage payments. If you plan on staying in the home for less than two years, it us unlikely to see a substantial financial return on your investment.
Do you need to sell your house in order to buy? Our associates can help you understand the current market conditions and assist you in making the best decisions when it comes to listing your home on the market. If you don’t own a home that needs to be sold, it is a great time to buy. Even with increasing lending restrictions, mortgage financing is still obtainable if you have a steady income and good credit.
How does the other options compare? When it comes to renting, calculating expenses is as simple as finding out the monthly rent and average utilities. However, when it comes to purchasing a home, the calculation becomes more complicated. Our associates at Jack White Real Estate can help! We are here to assist you in every aspect of the home purchase process and answer all of your questions about annual property taxes, homeowner tax incentives, and much more. Contact us today!