Relocating to a new area or looking for a new home? Ask yourself these questions to decide if it’s the right time to rent or buy as you begin a new chapter.
Should I Rent or Buy My Home?
Do I have steady income?
If you aren’t sure of your income or it fluctuates, you may find it hard to get approved for a home loan. Renting can be a good option while you build up a down payment or a longer work history.
What are home prices in my area? What are rent prices in my area?
Depending on your area, it may be cheaper to pay a monthly mortgage than pay monthly rent. Plus, the amount that you pay to your mortgage builds equity. You should compare home prices and rent prices to see which one works for you.
How long will I live here?
If you plan to move again soon, renting is much easier and less hassle. Trying to sell a home can take months and introduce added stress to your move. Plus, if you sell your home within a certain amount of time, you will likely have to pay a lot in taxes on any profit.
Do I want to customize my home?
If you want full control over your living space, owning your home can provide the opportunity to really make it your own. Whether you like to DIY or plan to hire a pro, as a homeowner you get to make all the decisions about things from paint color to flooring.
Can I afford monthly maintenance and upkeep?
Homes cost money and time to keep up. As a renter, the landlord is often responsible for fixing things that break and taking care of costly maintenance. Once you own your home, all of these tasks and costs fall to you. Be sure to include this in your budget.