There is no doubt that the prices of houses are making it a highly attractive time for people to buy a home. This is not the case for everyone, however. Just because the prices of homes are right does not mean that it’s the right time to buy. Renting may be the better option, depending on your own personal financial situation and a few other factors.
Length of Stay
The first point you should take into consideration is how long you intend to live in the property. If you are in a job that transfers you around every few years, now may not be the right time to invest in real estate. While you may pay less of a mortgage payment, you likely won’t recoup your closing costs and you may have a hard time selling when it’s time to move onto your next job location.
On the other hand, if you are newly married and are planning to raise your family in the home, now may be the perfect time to buy. Because homes are “on sale” right now, you can buy a bigger home for less money – both a less expensive purchase price and even a lower monthly payment than you might pay if you rented.
Rental Costs vs. Homebuying Costs
You should also consider the city where you are considering living. In some areas of the country, such as New York, even reduced home buying prices are 36 times higher than those of rental prices. In other locations, you may end up as a homeowner at a significantly lower monthly payment than the average rent for the same size or a smaller place.
Personal financial situations also play a vital role in whether renting is better than buying or vice versa. For example, many households have lost their home to foreclosure. Someone who has a foreclosure on their credit report is not likely to qualify for a mortgage to buy a new home. This leaves renting a place to live as one of their only options.
[Mortgage Help: Get your free credit report and see if your credit score is mortgage qualified]Personal Choice
Finally, renting or buying a home may come down to personal preference. Some people do not want to have to worry about paying for and managing home repairs. If the plumbing goes in a rental place, the landlord is responsible for managing the plumbing project, and more importantly, paying for it. If you are a homeowner and something goes wrong, you are the party responsible for hiring someone to make the repairs and you are certainly the party who has to whip out your checkbook.
Individuals, families and households across the nation are debating whether now is the time to rent or buy a place to live. Unfortunately, there is not a one-size-fits-all answer for all situations. Instead, the decision comes down to length of stay, rent and mortgage prices, and personal preferences, among other considerations.
Whether your decide to rent or buy your home, make sure you zero problems qualifying by reviewing your credit report and making improvements if your credit score isn’t in tip-top shape. You can do this and more at Quizzle.com.