Buy or Rent?
The American dream has always been to own a home. Times change and dreams change. There are many factors to consider before taking this big step. With today’s society being more transient than our parents, buying a home may not always be the answer.
If you are planning to only be in a home for a couple of years, and the real estate market is flat or declining, renting may be a better answer. Although, this scenario may be obvious, there are other considerations that are not as clear-cut that may make you think about renting versus buying. Some of these items are:
- How long do I intend to stay in the home?
- What are the trends in the real estate price changes in my market?
- How much debt do I have?
- What percent down payment can I make on a new home?
- Have I calculated how much it will cost to purchase a new home such as closing costs, insurance and fees? Do I have the cash to finalize the purchase?
- What is my credit rating and my FICO score?
- How will a mortgage affect my credit score if I need to purchase another item on credit?
- How much money do I need for monthly bills?
- Have I considered the additional costs of home ownership such as taxes and home maintenance?
- Can I afford to furnish the new home?
- How will purchasing a home impact my taxes?
- Can I do home maintenance myself or do I have to hire someone for each job?
- What else could I do with my money to build my personal worth?
Although this may seem very confusing to begin with, there are some very helpful calculators available on the internet. These calculators will help give you a realistic financial profile of the impact of home ownership versus renting.
Once you decide which answer is for you, RealeFlix®.com will help you find the right home with video tours and photos.
http://www.ginniemae.gov/rent_vs_buy/rent_vs_buy_calc.asp?Section=YPTH
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