Are you trying to decide whether you should continue renting or if now is the time to buy? When deciding between renting and buying a home, there are several factors that need to be taken into consideration. To help you decide which is the right choice for you, here is a closer look at some of the things that you need to consider.
Your lifestyle is one of the key factors to take into consideration when deciding between renting or buying a property. One of the clear benefits of renting a property is that it gives you a maintenance-free place to live. When you buy a property, you are responsible for handling all of the maintenance and repairs that may be needed for the property. On the other hand, when you purchase a property, you have more flexibility in how you choose to renovate and decorate the space. In this way, purchasing a property allows you to more effectively create a space that reflects your personality and needs.
Your Future Plans
Your future plans, both short-term and long-term, will affect whether or not now is a good time to buy a home. If you do not anticipate remaining in the area for the next few years, it may not make financial sense to purchase a property only to resell it again in a few short years. In addition, it is easier to make a move out of your home if you are renting rather than if you own the property. If you anticipate remaining in the home for five years or more, on the other hand, buying the property and building equity within it is certainly going to be the better financial choice.
Of course, you should also consider the housing market when determining whether or not now is the right time to buy. If the market where you are considering making a purchase is on a downswing, you might want to wait until values bottom out before you make a purchase. Otherwise, you are likely to lose money on your investment. On the other hand, if values are on the upswing, it is better to purchase now rather than later. Otherwise, you may find yourself paying tens of thousands of dollars more for the same property. in short, if you have the opportunity to build equity with your home purchase, buying is certainly going to be the better option.
Generally speaking, you will find that it is cheaper to buy a house than it is to rent. In addition, when buying a house, the money you pay each month toward your mortgage helps to build equity. When you rent, the money you pay each month goes toward helping an investor rather than yourself.
Your Commitment to the Area
Purchasing a home signifies making a greater commitment to the neighborhood than does renting. Therefore, you need to determine if you are genuinely ready to live in the neighborhood for the next several years before you make a purchase. To that end, it may be wise to rent in the neighborhood for a few years before making a purchase. This way, you will have a much better idea if the neighborhood is right for you.
If you are certain the neighborhood is where you want to stay, however, there is no reason to put off making the purchase today! Contact Keller Williams New York at (718) 697-6800 to get started!