Monday, February 5, 2024 / by Makayla Santa Ana
The Pros And Cons Of Renting Vs. Buying
Finding the right time to buy a home is an integral part of owning a home. If you are looking to purchase a home at a certain time, this article will help!
As outlined in this article, the best time to buy a home is when you can afford the to make the payments on your mortgage every month and you're planning on staying in the home longterm.
It is best to rent if you are only staying in the area for a short amount of time like less than 3 years.
Buying is better than renting
Even though it may cost more at first, buying compared to buying a house is best. You are able to make updates and changes, since you own the property.
This is because of the limited lifespan of new homes. If you have to replace a heating or cooling system, install a new roof or replace that with a newer one, then you can update the exterior and interior.
Home repairs are limited by how much you know about them and how good your skills are. If you learn how to repair things, buying is better than renting because you can get good quality results more quickly.
Income needs to be sufficient for buying
While it is definitely desirable to have a large bank account full of money when buying a home, it is also important to have a healthy sense of financial security when you are buying a home.
Another important part of having enough money to buy a home is having a healthy fear of foreclosure. Having this fear can keep you from making rash decisions that might cause you to lose your home in a Foreclosure.
Budgeting and managing finances is also very important when buying property. Many people make mistakes when they are trying to buy property for the first time due to their lack of knowledge about this area of property sales.
You need to have a down payment
If you’re buying a home, you’ll need to have a certain amount of money put into the home as a down payment. The down payment can come from you, or it can be gifted from someone you know.
The amount of the down payment varies by home, but it must be a certain number of dollars. This is called a “down” payment.
Most people put between 3.5 and 5% of the value of their home in this downpayment depending on they type of loan you are able to get.
If you do not have the money for your downpayment, renting could be a better option for you while you save up money. It is always important to contact your agent at Move4Free Realty, to see if they have any options for zero dollars down or programs to help with downpayment before deciding to rent.
Location is a crucial factor when deciding whether to buy or rent.
It's important to assess the proximity of affordable locations to your workplace, your long-term plans for the area, familiarity with the area and personal connections, among other factors.
Some individuals choose to rent when moving from out of state to explore different cities while others would prefer to purchase a home so they can make any changes they want.
The housing market is unpredictable, and it's unclear whether home prices will increase, remain stable, or decrease in the short term. However, historically, home prices have shown a tendency to increase in the long term. If you plan to stay in a location for just a year or two, renting may be a better option. On the other hand, waiting to purchase a home for a year or more may result in homes being outside your budget if prices increase. These are important considerations to keep in mind.
Calculate your budget
The average price of a home in Virginia is around $390,000 according to VirginiaREALTORS.org. As a general rule, the more money you have to spend the more of a house you are able to buy.
Doing this can help find homes that are within your comfort zone or need to be upgraded on the property for it to be worth it financially.
Get a REALTOR to help you
Getting a REALTOR to help you decide whether to rent or buy is crucial. At Move4Free Realty, we can help you make a pro and con list that matches your specific needs and life.
It is a REALTORs job to know the current housing market and different areas and will be able to help you with your specific needs.