Rent or Buy a House? How to Decide
The decision of whether to rent or buy a home is a decision that many people struggle over for years. There are a lot of different factors that play into such a big decision and no one wants to be left with a home they do not love.
Even though it seems impossible to make such a high-pressure decision, there are some ways to make the process go smoothly. Anyone can use these steps to consider the options and choose what is best for them and their families. Here are some ways to know whether to buy or rent a home.
Add up all living costs in the area
Every area will have its own share of living costs that will vary slightly. Everyone should make sure they know all the living costs of the area before they make a decision. This includes things like parking, utilities, commute times, and services from http://www.tvproviders.com/dish-network/. These items may be so expensive all together that a person cannot afford to rent or buy in the area, or maybe they will have to rent for a while to save some money.
Decide how long to live there
Time that will be spent in the home is also another big factor. People who want to buy a home need to be certain that they will be living there for at least 5 years before they move again. This amount of time is usually ideal to build back from their investment, but if a family cannot commit to stay in one place for that long, they might want to consider renting first.
Compare the prices of mortgages to price of rent
In some areas, the price that people pay for rent is almost identical to the price they would pay for the same home’s mortgage. In these cases, it may be more financially smart to buy. However, some areas may be able to offer rent prices much lower than a normal mortgage. Compare in the area to see what it most common.
Consider home maintenance
Home maintenance may seem like a small issue to worry about, but it can play a big factor in how happy a family is. Home maintenance in a home that people own can be very extensive, time consuming and expensive. However, a rental property does not involve any of this hassle. Families can decide how much freedom they want outside their home and what is most valuable to them.
Look at a credit profile
Credit scores play a huge part in the rates that people will get when buying a home. Mortgages, loan prices and approval ratings are all dependent on those numbers, so people who have poor credit scores or lack of credit might struggle to find a low price when buying a home.
What is the best investment for the future?
In the end, families need to decide what is best for their future. This will vary for each family, but people need to decide what is most financially responsible and where they will be most comfortable.