Whether you’ve just moved to a new city or you’re deciding what to do when your lease is up at your current rental property, you’ve probably spent some time wrestling with renting a home vs buying a home.
When it comes to renting vs buying, there are plenty of good arguments for each one, and it’s no longer cut-and-dried as to which one is the best choice for each person. There’s a reason that one-third of Americans still choose to rent, and it’s because, for some families, it’s a perfectly viable choice. If you’re trying to make your decision, here are a few things you need to keep in mind!
How Long Will You Stay There?
When you decide to buy a house, you need to be sure you’re where you want to call home. Buying a home is no longer an automatic decision as people move jobs more frequently than ever, so if you’re choosing to buy, it should be because you’ve decided you really like the area.
If you can’t see yourself in a location five to 10 years down the road, you should opt to continue renting a home because renting offers much greater flexibility. Remember, you should buy when it’s the right time for you, and part of that means finding a place you genuinely love to call home.
Do You Have Financial Flexibility?
Don’t overlook this part of deciding if it’s time to buy or not because the pandemic made it clear that finances can turn at any point. The last thing you want to do in an uncertain time is to lock yourself into a purchase that you can’t escape without having a financial cushion to support yourself. If you don’t have savings available after purchasing a home, it’s a good idea to wait a few more months until you can make that purchase without putting yourself in a tight spot.
Are You Paying Too Much?
With how crazy the market can get for renting a home, it can be a good idea to lock yourself into a reasonable payment if you have the financial muscle to afford it. Rents rise every year, and in some locations, the increase can be enough to drive you out of your ideal location or to get an emergency loan to pay rent on time. Personal loan lenders like CASH 1 can support you by providing funds to cover small expenses like paying rent or making large purchases like buying a house.
In many cases, buying a home can be an excellent way to save money on your monthly payments while beginning to build equity for years down the road. If you’re spending too much money to live in a place you really like, it can be a good idea to purchase a property and make sure that you secure your home before the market prices you out.
When it comes to buying vs renting, it’s important to remember that this is a long-term decision, so you should treat it carefully. If you think buying a house is the right move for you, you’ll find plenty of help to get you into the right property!