Deciding to Buy or Rent Your Home

For many of us, the ultimate purchase is buying our own home. However, that might not be the wisest path for some of us. Many factors should go into your decision to make sure that you don’t get financially burned. We will be giving you some tips on helping you decide whether buying or renting your next home is a good idea.

1. Take Your Time Deciding to Buy or Rent a Home

As we have said, buying a home is the pursuit of many American families. Buying a home can give you security, and help to build equity. However, renting might be a better option, especially if it puts you close to work or has you living in a better part of town. You also need to consider whether you will be staying in the area for any length of time and of course, the current real estate market should weigh in on your decision.

If you are trying to decide whether to buy or rent, think about how long you would own the house. You would need to own it long enough to recoup your closing costs and any fees related to the purchase of the home. There are many online tools that can help you in your rent or buy a house quandary. Buying a home is probably the biggest purchase you will make and you don’t want to rush into it emotionally. Check the housing prices in the area you want to buy. If they are declining or rising too quickly, it might not be a good time to buy.

2. Do the Math When Deciding to Buy or Rent a Home

If you are trying to decide whether to buy or rent, this is the time to crunch your financial numbers. Overextending yourself on a home is easy to do if you are not careful. Owning a home creates many expenses such as a mortgage, maintenance, property taxes, higher insurance rates, and a bunch of other costs that renters don’t incur.

Understand that there is a big difference in what you qualify for and what you can really afford when buying a house. Your housing costs should not exceed 28 percent per month or your total gross income. If your married and buying a home, make sure that you would be comfortable making those payments on just one income.

3. List Your Needs When Deciding to Buy or Rent a Home

Many of us get too caught up in the old saying in real estate, location, location, location. That is an important item; however, you need to find a home you are going to be happy in for years to come. If you love to cook, you should be looking for a large kitchen. If you have kids, maybe a backyard is important. Impulse buying can just get you in trouble when deciding to buy or rent a home. Sit down a make a list in order of importance and use it to conduct your research while searching for your next home.

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