Should you buy or rent?
Recent graduates, young couples, relocating professionals and others have all asked themselves this question at one point or another. While each option has its benefits, the decision to buy a condominium or house as opposed to renting is complex and based on a number of factors. Consider these four questions before deciding to buy or rent:
1. Do you have a steady income?
At or near the top of every potential homebuyer’s mind is whether or not they can afford to buy a home right now. Buying a home remains a sound financial decision for those with documented income and a good credit history, and a steady income can provide a strong backbone for the initial down payment and future mortgage payments. Call a Coldwell Banker Paradise Real Estate Professional even before you’re ready to buy a home. Along with a financial planner, a real estate professional can help you answer and uncover questions about the cost of homeownership.
2. Do you plan to stay in a home for an extended period of time?
With proper planning, a home purchase has historically proven to be one of the strongest investments one can make. Along those lines, it’s imperative to understand that investing in a home is much different than investing in a stock portfolio. Homes typically appreciate in value over time while the owner builds his or her equity through monthly mortgage payments. If you anticipate staying in a home for only one or two years, it doesn’t necessarily mean buying is not for you, but you are less likely to see a financial return on your investment.
3. Do you plan to sell a house in order to buy a house?
Coldwell Banker Paradise has been family owned and operated for 60 years. We are your local real estate experts. Our Sales Associates can help you understand current local market conditions and will help you make smart decisions when listing a home on the market.If you do not currently own a home that needs to be sold prior to purchasing a new one, now is a particularly smart time to buy. Although banks are more cautious when it comes to approving loans, Mortgage financing is still widely available for those with a steady income and solid credit.
4. How do your other options compare?
For renters, calculating month-to-month housing expenses is as easy as inquiring about the monthly rent and average utilities. The calculation gets a bit more complicated when considering the monthly cost of owning a home.