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Time Home Buyer Mortgage Center > Renting vs.
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Rent vs Buy - When is it time to buy?
Knowing
when to dive in and buy a home is not an easy decision
to make. Besides the feeling of pride that comes with
owning a home, there are often tax advantages, the
potential for appreciation, and the opportunity to
build equity with each monthly payment. But with the
benefits there comes some risk. For example, home
prices may slip, roofs may leak, and property taxes
may go up. It is important to assess whether you can
afford the financial burden and time requirements
that accompany homeownership. Realizing that homeownership
is not for everyone and evaluating whether to rent
or buy is an important step in planning for your future.
Rent Versus Buying Questions:
Here are some questions to ask yourself when deciding on whether to rent or buy a home:
- What are your monthly payments going to be with
your taxes and insurance included in the house payment?
- What is the likelihood of property values increasing
in your area?
- Do you have enough of money saved to make repairs
on the home as needed and how do you feel about
doing home maintenance projects?
- How long would it take to sell your property if
necessary?
- How long do you anticipate being in the home?
This can help you calculate how much principal you
will have paid and how much equity you will have
built during the designated period of time.
- What is the state of the rental market in your
area? If rental prices are high your monthly mortgage
payment might be significantly lower than a rent
payment for the same home. If there are many rental
properties sitting empty you might be able to rent
a home for a bargain, saving money each month to
put towards a future down payment.
Additional First-Time Buyer Resources:
