There are many ups and downs when purchasing or renting a home. Do you find yourself in the position of needing to choose a path? Perhaps you are currently renting, but are considering buying. There are different variables to consider if you find yourself in this position. The following article will help you (hopefully) arrive at a decision that is the best for you.
- Does it Make Sense Financially to Buy?
A huge reason people end up purchasing a home is because in the long term, money is actually saved. When renting a home, the mortgage plus a profit for the homeowner is factored into the total payment. It is more likely that you could have the same lifestyle, but with a lower price tag associated with it. However, it has to make sense at the time in your life that you are in.A good question to ask yourself is, how long do I plan on renting? Many people have to rent because of the position they find themselves in. It could be because of a short-term job in a location that will change, renting just long enough to save money for a downpayment, renting while building, and so forth. If you plan on living somewhere short-term, the more logical route to take is to rent. However, if you are looking to plant routes somewhere, it is best to save money for a downpayment and purchase a home. You may have to wait until the market is right to avoid paying top dollar for a property. If the market is right, and you absolutely cannot wait to buy, try to find a home that needs renovating. In that case, you still have the opportunity to add value to your home and make a profit later down the road.
- Are you Emotionally Ready?
In addition to being financially prepared, it is also wise to make sure you are emotionally prepared. Many people don’t understand the stress and frustration that not only comes with the process of purchasing, but once the purchase is complete. When you are the home owner, you have a lot more responsibility to manage. If the A/C goes out, there is no landlord to call to fix it. You are the one responsible financially for things that break and things that the home needs. There will be grass that needs to be mowed, snow to shovel, and gutters to clean. When you rent a home these things are generally taken care of. If you’re at a point in your life where emotionally you cannot take on this additional responsibility of home ownership, it is best to continue renting for the time being.
- Are you Handy?
As previously mentioned, owning a home comes with many tasks that will need to be completed. Unless you have oodles of money to spend on handymen and contractors, hopefully you are a little bit handy yourself. Especially if you purchase a home that needs renovations! Luckily for you, there are many things that are DIY and can be accomplished all by yourself (even without a construction background), such as: painting (both interior and exterior), landscaping, installing faux wall paneling (faux brick, faux stone, or faux wood panels), changing toilet flappers, swapping lightbulbs, and changing furnace filters.
As you can see, there is a lot to consider when making the decision to rent or buy. If you find yourself in the position of needing to make a choice, hopefully these tips helped you arrive at a comfortable solution that works best for you!