Many people are torn between renting and buying a home. Purchasing a new home is one of the most important decisions you will ever make. You will want to make as informed of a decision as possible by taking a close look at the pros and cons of both renting and buying. It is also wise to evaluate the current real estate conditions of your area.
Why is it a good idea to purchase a home?
It’s an investment. You have an opportunity to build equity and possibly make money on your house some day.
You can make any changes to your house that you would like.
Over time owning a home can also improve your credit rating.
As long as you continue to make your mortgage payment you will never be forced to leave your residence. A landlord can make you leave when ever your lease is up.
Landlords love to raise rent when they get a chance. If you get a 30 year fixed rate mortgage you don’t have to worry about your monthly payment ever going up.
One of the greatest things you get out of buying a home is stability and a sense of accomplishment.
When is renting a home the right decision?
If you are staying in a place for a short period of time. You may not be able to make money on your investment if you sell too soon.
If you are renting you don’t have to be responsible for repairs and maintenance. The cost of repairs and maintenance to a home can be very costly. You need to be financially prepared for these unexpected expenses before you purchase a home.
As long as you give proper notice you can leave your residence whenever you need to.
Before you make your decision you should really take a look at the housing market in your area. If the prices of homes have become overly inflated you may want to hold off on buying.
You will also want to watch interest rates. If interest rates are really high you may also want to wait unless the prices of homes have drastically decreased. Right now homes prices and interest rates are at all time lows. If you are able to get financed now is the perfect time to purchase a home.
Deciding to buy or rent can be a difficult decision, but consider the options along with your situation to determine the choice that is right for you.