Real Estate Today: Should You Buy or Rent?
Published on September 30th, 2014 | by Joan Makai
There is no doubt that one of the most important decisions that you will ever make in your life as you age is buying properties, or more specifically, your own home. Whether you are in the process of settling down or looking for a new place to relocate your family, surely you have thought of whether purchasing a new home is a better decision than renting. With the way economy is plummeting and expenses that are piling high, it may not be easy to decide.
If you are in that phase of your life, here are some things which you should consider:
How Much Money Do You Have?
If you have stashed enough cash or if you have good credit to get a mortgage then by all means – buy a new house. But if you think that you don’t have so much at this moment and might have a problem with your finances later on, then it’s a smarter decision to rent. You will need at least five times what you have right now for renting if you are planning to purchase a home.
But do remember too that, at the end of the day, you will get to save more if you buy your own home. The biggest cost really is the down payment.
In relation to the first one, you should ensure that you’ll have a job or source of income for the next several years so that you can actually pay for the mortgage when you’re buying properties. If you aren’t sure that you can keep your job, you should have enough as reserve cash for continuous payment.
How Long Will You Stay In the Home?
There are some who aren’t so sure if buying a house is a very good idea because peoples’ minds change about their decisions every seven years. If you’re very certain that this will be your permanent home, then go ahead and buy. But if you think that you’ll be traveling every now and then, renting properties could be your better option
Think of Other Possible Costs in Your Home
Most people tend to just compare real estate when they are planning to buy. Once they find something they like, they set aside money for just the mortgage. But you should take into consideration all the possible costs of home improvement and maintenance as well because that is pretty expensive too.
Other Facilities and Amenities
If you are enjoying amenities such as free use of the pool, gym and even sports centers, it’s better if you stay in a condominium building or apartment complex offering those. It would be just too much expense on your part if you would have those constructed in your home. Also, you won’t need to stash extra cash for maintenance of these facilities if you live in a condo.
There are so many other things to consider when it comes to buying a new home or staying in your rental apartment. Make sure that you have a checklist of everything you need because it can really help you to compare real estate first before jumping to the nearest home sale.