Housing is probably the most crucial question for every American. We need a safe and secure place to live. And housing insecurity is a significant issue in our country, so it’s critical to plan for the future to avoid being one paycheck away from homelessness. But the picture isn’t so bleak that homeownership isn’t possible, but asking yourself the right questions to determine if renting or buying is a better solution for your life is critical.
Should you rent or buy a home? Here’s what to consider.
Security Vs. Equity
When people start to advise about buying a home, you’ll often hear that it’s an investment. But that might not paint the complete picture. A proper investment doesn’t require constant spending, but a house does.
Don’t buy a home unless you want to live there.
You want to consider your lifestyle and any possible life changes coming down the road. You will have specific needs if you plan to get married or have children. But sometimes, renting can be a better solution if changes, such as moving, might happen more frequently.
How Do You Know What You Can Afford?
One thing that keeps people in a cycle of renting is the uncertainty about the housing market and prices in your area. You’ll want to consider several financial aspects before you decide to buy. You’ll want to track your expenses, review your debt, and consider your savings.
If you find that your debt isn’t in a healthy place, you can start the process of credit repair to get you where you need to be to make these big financial life choices.
Breakdown in Costs between Buying and Renting
Both renting and buying will cost money. The question is whether you will own a home in the long run. Knowing what your rent or mortgage pays for is vital before making such a huge decision.
When you pay rent, that will cover maintenance. Your landlord is responsible for repairs and regular improvements. However, not all landlords are reasonable people. Depending on the situation, you may run into problems. You have rights as a renter and may have legal recourse.
When you own a home, maintenance is on top of your monthly mortgage payments. If your roof leaks, you’re responsible for fixing it. You also need to handle regular maintenance, which will be an added cost. And don’t forget property taxes.
Before you qualify for a mortgage, you’ll need to have a good credit score. If you’re concerned about your score, sign up with Best Credit RX today.