Wanting to own your own home seems to be a no-brainer. Whether it’s an apartment, a condominium, a house, or a duplex – everyone wants to have a property in their name. It offers a sense of security, ensuring that you never have to worry about paying rent or getting kicked out of the property.
Unfortunately, making the shift from renting to buying a home can be difficult. Being such a huge investment, you need to carefully think about the how and when of buying in this complicated real estate market. The following factors are just some of the things to consider when deciding to rent or buy a home:
Am I Happy with My Circumstances?
Do you see yourself living in the same area for the next 5 to 10 years? Buying a home means you’ve settled in the area with a stable source of income to keep the house funded. If you see yourself moving to another state or country, renting may be the better option as breaking a lease is easier than selling a house.
This is why most home buyers are couples or people intending to start a family. However, don’t think that you need to be in a solid relationship before buying a house. You can buy a house even if you’re single as long as your mindset is one of permanence.
Is the Timing Right?
When we talk about timing, we’re not just talking about the housing market. This also involves your motivations for buying as opposed to renting. For example, are you under pressure to make the purchase? Are you under a lot of stress? Do you have job security even with the pandemic? Buying a house simply because you think you’re at an age where you’re supposed to buy one is never a good reason. If anything, the housing crisis of 2008 tells us that buying real estate should never be taken lightly.
How Are My Finances?
This is perhaps the most important question you need to answer because buying and owning a house is expensive. Before you enjoy all the upsides of being a homeowner, you have to deal with all the disadvantages. Repair costs, down payment, mortgage, moving costs, and closing costs are just some of the bigger expenses. Note that ideally, you should be able to put up a 20% down payment when buying property.
As a renter, major repairs are typically shouldered by the landlord. This is not the case if you own a house. Renting lets you accurately predict your expenses so that you can save up for more important costs like building your savings, paying off debt, and creating new sources of income.
If you find that you are not in a good place financially, it’s perfectly fine to continue renting until you’re in a comfortable position.
Find Out Your Options Today
As you decide to rent or buy a home, contacting an experienced Maryland real estate agent will help you get started with this huge decision. The Ashley M. Miller Team is more than happy to assist you with any questions you might have about Maryland properties. Contact us today for a free consult!
Sources:
https://realestate.usnews.com/real-estate/articles/renting-vs-buying-a-home-which-is-smarter
https://www.investopedia.com/financial-edge/1112/reasons-renting-is-better-than-buying.aspx
https://bettermoneyhabits.bankofamerica.com/en/home-ownership/renting-owning-house
