Should you rent a home or buy one?
Since the housing crash, many people are hesitant about jumping into the market. While the decision of whether to rent or buy is ultimately based on personal circumstances, there are a few points I’d like for you to consider.
For one, ask yourself how long you plan to stay in your next home. If you only plan to stay in the property for another year or two, renting may make more sense. A more long-term arrangement, though, may lead you to the decision to buy.
The next question you should consider is whether you’re financially able to purchase a home. Do you have enough saved for a down payment? What does your credit score look like? How will a monthly mortgage payment impact your budget? The best way to answer each of these questions is to meet with a mortgage professional and discuss your options.
While purchasing a home may seem expensive, there are many financial benefits to buying a property.
Making a monthly mortgage payment is an investment into your own personal wealth, rather than your landlord’s. There are also many tax benefits associated with purchasing a home. Your net worth will likely increase when you make the transition from renter to homeowner, too.
And with interest rates still at historic lows, now is a great time to purchase a home. Rental rates will continue to rise over the years as a result of inflation, while a locked-in mortgage rate will ensure that your payments remain static.
Buying also provides you with the freedom to make renovations or changes to your living space, without seeking the permission of your landlord.
If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.