The most frequently asked housing question is whether to buy or to rent. Currently mortgage rates are at a historical low and could be sending a signal that it’s a good time to buy.
More importantly is deciding what is best for you and your family. Stop to think about your immediate housing needs and your 5 year housing needs. Ask yourself questions like:
Am I pre-qualified?
Have I discussed my needs with an accountant or mortgage banker?
Where is my job going to take me?
How much traveling will I be doing?
Will I be having additional family ie. parents or children?
How important is it to me to be close to work?
Once I get into a home can I afford the maintenance and taxes that come with home ownership?
Do I want and enjoy the ownership so I can appreciate my own home?
Do I have time for yard work?
Sit down and take the time to analyze these important issues before you decide to buy a home. Be realistic about your wants, needs, requirements and financial parameters. Home ownership is a very personal decision and will most likely be one of the largest financial decisions you’ll make in your lifetime.
Renting is like paying for monthly parking. You’re paying only to be able to park in your spot, once the money is spent it’s gone. As a renter, you pay your damage deposit, possibly first and last month’s rent and continued rent payments. You never walk away with any equity and yet it may be the temporary solution for you right now. Maybe you don’t know where your job is taking you for the next year so it might be best to wait. Renting vs. buying depends solely on you and your financial situation.
If you have talked with the appropriate resources and have been pre-qualified and are ready to stay in one spot for at least 5 years than you are a good candidate for home ownership. You would then have the tax advantage of writing off your interest you have paid against your home loan. You also have the advantage of owning something that you can remodel or decorate as you want. While renting is more cost effective in the short term, purchasing a home builds equity and becomes and investment over a longer period of time.
Be sure you completely understand your financial picture and housing needs before making a decision. Long term it makes sense to buy and invest in a home. However, that may not fit your personal or financial situation at the time. Review the above questions and make a plan.