3 Things to Consider Before Deciding to Buy or Rent Your Next Home
Category Advice
There's no straight-forward answer to whether buying or renting a home is better.
There are many factors to consider before making the decision, and it will ultimately depend on your own circumstances and preferences. Here are 3 questions to ask yourself to help you figure out whether renting or owning property is the best fit for you right now:
Are you financially stable?
This seems like an obvious question, but many people overlook additional costs to the downpayment and monthly bond. Are you aware that at your closing appointment you will need to pay all of your closing costs, including- mortgage interest rate discount points, document preparation, property appraisal and inspection, flood-zone determination, notary fees, title insurance, termite inspection and more?
After all the upfront payments, you also have to consider added costs such as homeowners insurance (which is notably more than renters policy), maintenance, repairs and of course tax rates.
Are you ready to commit?
Buying a home is a real commitment. It is generally considered unwise to invest in property if you aren't planning to hold on to it for at least 3 years.
Other than the fact that your closing costs are hefty, and probably only worth it if you're in it for the long haul, price volatility is also something to consider. Although real estate is generally known to increase in value over time- making it a relatively safe long-term investment, in a short span of time your property could quickly decrease in value and you could lose a significant amount of money.
How would renting/buying affect your lifestyle?
If the idea of flexibility, freedom and convenience sounds appealing to you, renting your next home might be the right move. However, renting doesn't come with the privacy and freedom of control that owning a home does.
After evaluating your financial situation and lifestyle preferences, if you've realised that you might not be ready to make any commitments, renting might be the best fit for you right now. If you still feel confident that you're ready to take the jump into property investment go for it! There is so much promise in property.
Buying or renting a home can be stressful - if you're managing the process on your own. Get in touch with SAproperty.com so we can help you find the home of your dreams, hasslefree.
Author: SAproperty.com
