News and Events
October 16, 2007
Should I Rent or Should I Buy?
Should I Rent or Should I Buy?
It is the question on the mind’s of many, and especially on
that of the first time homebuyer. While
many of us believe that buying is the answer, there are some very important
questions to be asking yourself before making your decision.
If you were to buy, how long do you plan to stay in the
home? If your answer is three years or
more, than buying will start to make sense.
Depending upon the market that you live in, it can take anywhere from
two to six years for a home to appreciate enough for you to offset any selling
and moving costs. If you move before
that time, you may find yourself upside down and walk away with less than what
you put in. Stability is key in the rent
or buy decision.
Do you have some extra savings? Smart homebuyers will have at least two
months mortgage payments saved to deal with the unexpected. As a homeowner you will have repairs and
other costs of homeownership that can blind-side you. The more you have in
savings the better prepared you will be when those times arrive.
How well do you manage your money? Can you keep your hands out of the savings
cookie jar? If you can keep yourself
from your savings and avoid going into credit card debt you will be prepared for
those unexpected situations. Spending
your savings will only drop you into further debt when you have an emergency
come up as you will have to borrow additional money and finance those
emergencies. If you are currently
stretched by your monthly obligations, you may be better suited to clear up
your current situation and prepare for buying a home in the near future.
If you can answer those questions with certainty, than you
are ready for the advantages of being a homeowner. You can stop putting money into the pockets
of your current landlords and start putting it into yours. With each stable monthly payment you will
invest safely into your future and you feel the true sense of pride that comes
with owning your own home.
