The final decision of whether you should buy, or rent is a big one. There are many questions that you have to answer about your own situation and life to figure out which option is better for you. As home prices are rising, is it really worth buying a home right now or renting and waiting? Well, there is no short and direct answer to that question but let’s break it down.
Home prices are increasing by the second in the real estate market, but low mortgage rates are helping to own a home be more affordable. Mortgage rates have dropped below 3% which is helping people buy homes even if the prices are skyrocketing. When compared to owning a home, the cost of renting seems to be more expensive.
When it comes to numbers, determining if you can afford to buy a home is crucial. Even though you can buy a home with a minimum 5% down payment, it’s a good idea to wait until you can put a good amount of money down. You may also need money to cover closing costs as well. The better your credit score, the better chance you will have getting a mortgage with a lower interest rate.
If you are looking to buy, there are many reasons why you should. You have the complete freedom to renovate your home to your desire. The big reason, well, the property is yours. You succeeded in buying a home. That, for sure, is a great accomplishment. But, with positives comes negatives. If you want to move and relocate somewhere else, the process of selling is a great ordeal. There are a lot of steps to take if you decide you want to get up and live somewhere else.
If you are wanting to rent, look at your living situation. Renting is a great idea if you plan on moving around a lot, you need time to save up money to buy a home, or you are paying off debt. When you rent, you can easily decide to move once your lease is up or you can try and get out of a lease. Another great reason to rent is maintenance costs. If there is an issue, call your landlord. Renter’s insurance will also go a long way.
When it comes to the negatives of renting, there are a few. If you want to change up your space, there is less freedom to do so. Ultimately, your landlord will have to approve any major changes you want to make which puts you in the position of not having a lot to say in the matter of what your place looks like.
There is no clear-cut answer to which is better, it all comes down to what is better for you and your financial and living situation.