Buying Verses Renting A
Home
When it comes to a home,
you have two options: buy or rent. What
is right for one person may not be right for another, which is why it's
important to know which is the best option for your individual situation.
Why People Rent
There are a number of
reasons why someone may either choose or be forced to rent, including sporadic
or unpredictable income, a high debt-to-income ratio, a bankruptcy or
foreclosure within the last six months, unpaid collection accounts or
judgments, frequent relocating for employment or the inability to save enough
money for a required down payment on the purchase of a home.
Maintenance Matters
As a homeowner, you will
be responsible for any maintenance or repair issues that arise. This is a big consideration when choosing
whether to rent or buy. When you rent,
the property owner is responsible for repairs and it may not always be obvious
that these issues can be very costly.
How To Know When It's Time
To Buy
If you have steady income
with a good employment history, can provide a down payment of at least 5-10
percent of the purchase price and are current with all debts, it may be time to
consider buying a home instead of renting.
In some cases, the cost of rent may even exceed that of a typical
mortgage payment.
When deciding to buy, job
stability is a big factor. If your job
does not require frequent relocation and you plan to live in the home for at
least 5-10 years, you may want to consider making the purchase. If you need to relocate after that, you may
have enough equity from the sale to use as a down payment on another home.
Home Buyer's
Checklist
If you can answer yes to
the following questions, you may be ready for home ownership. Your Premier Beach Realty Agent can help you to find the
perfect home based on your individual needs.
Have you been steadily
employed for at least one year, but preferably two years?
Do you plan to live in the
home long enough to build equity?
Can you provide a down
payment and still have enough money left to pay for closing costs, utilities
and home furnishings?
Are you current on all
debts, including auto loans, credit cards, etc.?
In addition to any current
debts that you may have, can you afford a monthly mortgage payment which will
likely include property taxes and insurance?
Do you have the time to
devote to shopping for a home and comparing interest rates from various
lenders?
Have you checked your
credit reports for inaccuracies and disputed anything that needs correction
with each of the three major credit reporting agencies?
The decision to buy or
rent is a very personal one that can only be determined after a careful evaluation
of your situation. A Premier Beach Realty Agent can show you the perfect home and a lender can
tell you whether or not you can afford it, but it's up to you to make the
choice as to whether or not you are ready to make the move.