The housing market has fallen from the current recession and a lot of professionals, especially young ones, are still hesitant to buy a home. The question still lingers: is it better to buy or is it more practical to rent? There comes a point when you think about all the money you have to pay to your landlord and you think about whether or not the accumulated rent would have been enough to buy you a home. On the other hand, the overall home buying process is no easy and simple task. Owning a home entails a lot of legal, financial, and personal obligations that varies from person to person. If you're undecided whether to buy or to simply keep on renting, the following things might help you make up your mind.
Consider the housing market
You've heard it: the housing market is in a recession and the time to buy is now. However, you should be aware that there are two markets involved in the home buying process: the buyer's market and the seller's market. Home prices are generally strong and are definitely high in a seller's market. You may find this impractical especially if it's your first time to buy a home. On the other hand, a buyer's market (which we are currently in) offers much lower prices and is more affordable for first time home buyers.
Consider the credit market
It is important that you know what is happening to the credit market right now because it gives you a glimpse of what your mortgage chances will be. Lenders change the way they offer their interest rates depending on the current state of the economy. If cash is not a problem because the economy is strong, then lenders are not likely to offer the best mortgage rates. Lenders offer the best in mortgage rates when they want to attract more borrowers in the midst of a fluctuating economy. As a renter though, you don't have to worry on mortgages since all you have to pay for are your monthly rental fees.
Consider your finances
Personally, one of the biggest factors you must consider is your finances. Home ownership is one of the things associated with being financially independent. On the other hand, the process of owning a house requires smart and careful financial planning. A good credit rating results in good mortgage rates and a substantial amount of income makes it easier for you to make a larger down payment. If you are confident about the state of your finances, then you should embrace the prospect of buying your own home.
Consider the time commitment
Unlike renters who don't have to worry about the upkeep of their apartments, home owners have more obligations when it comes to keeping their homes in good shape. Consider whether you have a lot of time in your hands to attend to necessary home repairs. Although you may easily choose to pay for the services you need, you have to oversee everything that happens in your home. Remember: as a home owner, it is your legal obligation to your mortgage lender to keep your house always in good shape.
Consider your lifestyle
If you are someone who's always on the go, enjoys flexibility, and wants an unrestricted lifestyle, renting may really be the more ideal choice for you. On the other hand, if you want to settle down in one place where you feel secure to build and start your family, then buying your own home is definitely the right choice.
If you're thinking of buying a home, talk to us we're more than happy to answer any questions you may have.
Posted by Kirby Cox on