In previous decades, it was a given that an American would buy a home as soon as he/she was able to do so. However, due to economic changes, some people are deciding to rent even if they’re able to purchase a home. If you’re not sure whether renting or buying is best for you, here are some points to consider.
- If you’ve always wanted to buy a home
If being a homeowner has always been one of your goals, you should do all you can to accomplish this. A 2010 study conducted by Trulia.com and Harris Interactive revealed that 72% of Americans stated that owning a home was part of their “American Dream.” Whether owning a home represents financial freedom to you or you want property that will belong to your family for generations, working toward homeownership is a good idea.
- If you’re not interested in buying a home
Owning a home takes time, energy, and commitment. Paying a mortgage can also be expensive. Even if your friends and family members are trying to convince you to buy a home, you shouldn’t take on this responsibility if you’re not interested in becoming a homeowner.
- If you love a great deal
Home prices have significantly reduced over the years, so if you’re always looking for a deal, now may be the right time to purchase the home you want. Home prices are likely to remain low for a while, which gives you time to establish or build your savings account and boost your credit score.
- If you’re not in a financial position to buy a home
If you can’t afford down payments and aren’t prepared to pay property taxes or take care of home repair services, you may want to rent your home. This way, you’ll have a landlord to call if anything breaks in the house, you likely won’t have to pay a large down payment and you won’t be responsible for property taxes.
- If you want to stay in one city
Rent prices go up over time. In many areas, your landlord can convict you if he/she decides to sell the property. If you’ve decided that you want to stay in the city you’re currently living in, it may be safest to buy a home so you can move if and when you choose.
- If you want to buy a home eventually
If you buy a home too soon, this could negatively affect your finances. If you’re not prepared to buy a house, wait until you’ve completed a few steps. Make sure you’re comfortable with the amount of money you have in your savings account and talk with a financial advisor or real estate broker about options that are best for you. Come up with an action plan that puts you on track for owning a house in your desired timeframe.