The question that is prevalent is whether it is better to rent or buy a residence. This is the question raised at one point of time or another. People have to take into account their strategies for the future.
There are a number of questions that you should raise to yourself.
Is taking into account the house as an investment a vital decision?
You might have to contemplate on the lifestyle ahead. Americans consider their residences as a treasure. But, the value of the house could go down as there is the possibility of the value going up also.
The comparison that you make between a month’s rent and mortgage payment is the blunder that many people do.
One cannot underestimate the cost of the maintenance. If there is some fault with the equipment in the house, you have to volunteer to set it right or take the assistance of a professional for that. There are certain unexpected costs also. You might need equipment to maintain your lawn.
Can you take in the stress?
The finance has to be taken into consideration when it comes to buying or renting. It is the major financial move that people will adopt. Stress is one major criterion that needs to be taken into account when purchasing a house.
Take into account your age:
When you are in your early 20s or 30s things go against purchasing a house. It is not the responsibility that matters, but you do not know what the life has in store for you. The possession of a house restricts your move to different places.
When there was a steep hike in the ownership of home, unemployment also shot up. The main reason is that homebuyers do not desire to relocate for a job.
The option of either owning or renting is a decision which is more out of lifestyle changes.
Renting a house is much more flexible than owning a house. Although you might feel that you are wasting your money on renting, it is the affordable option. When the lease has expired, you can move to a different place.
There is less ease with respect to owning a house. Purchasing and disposing a residence is an intricate process, and you have to shell out plenty of money for that. It is not a financially sound decision if you plan to be rooted in the place for five years.
You require more savings:
The huge cost of buying and taking care of the residence has to be taken into account. There is no sound advice regarding the down payment. When the down payment is large, you give an appearance like you are financially secure. The interest rate plummets down and this results in the decrease of monthly payment. If you find it difficult to make a down payment, you might find it making the ends meet.
Browse for the average home price in the vicinity, and calculate which among buying or selling is the cheapest. It is arduous trial to desire buying a home, but being financially sound makes you climb up the ladder and become a homeowner.
Zack Childress, the proprietor of REI Success Academy, has written a number of articles which could enable you make a decision between buying and renting.