Trying to decide whether to rent or buy is an incredibly important decision. The financial implications are huge. For one, it is the one of the largest or even THE largest investment many people will make in their lifetimes. But, it is also a huge commitment of your funds. While renting allows more flexibility and less grave consequences if you lose your job, being unable to pay a mortgage can have much more serious results.
On the positive side, if done correctly, and with a good market on your side, people have made great returns on their home investments.
But, buying or renting is not just a financial decision. It is a studied fact that people experience other benefits from owning– like pride of ownership and increased stability that can even have the surprising benefit of helping your kids do better in school.
Here are some questions to help you consider your personal rent or buy situation:
Motivation: What is the Primary Reason You Want to Buy?
Is it to make a financial investment? Or, because of the non-financial benefits of buying a home? Or both?
Financially: Is Now a Good Time for YOU?
Can you afford it? How much can you afford? Can you afford a home that meets your standard of living?
Have you looked at Rent or Buy Calculators for your situation?
What is the current price of mortgages?
How much can you put aside for a down payment?
If Investing is The Primary Factor: Will It Be a Good Investment?
What are current mortgage rates?
What is the market currently like in the city you will be buying?
Are you willing to buy a fixer upper?
What other ways are you willing to invest your money? How do these rates compare?
Other Factors to Consider?
Are you committed to living in the same place for at least 3-7 years?
Do you want to spend time maintaining or fixing up your home or have the resources to hire someone to do it?
Do you have a stable job? Do you have a reserve of cash to pay your mortgage in the event that you lose your job?
If you have carefully considered these questions and are interested in speaking with one of our exclusive buyer’s agents who protects home buyers rights, give us a call or fill in our find an agent form today.