Is it Better to Rent or Buy a Home Now?
For most renters, the dream of home ownership remains strong. With
the housing market becoming increasingly unstable; however, many would
be homeowners are beginning to think they might want to wait before
committing themselves to a mortgage payment.
There is certainly no doubt that a mortgage is a large responsibility;
which is largely why so many renters remain unsure whether now is the
right time for them to buy or not. Some home buyers tend to believe that
if they do not buy right now they could be missing out on the
appreciation that real estate tends to provide. They believe in the idea
of investing their money in a home rather than throwing away rent money
month after month. Other renters; however, point out that the increasing
number of foreclosures indicates that many homeowners have overextended
themselves financially.
The recent falling prices of homes across the nation are providing a new
light on the subject. In addition, the rate of appreciation has remained
well above average in the last few years. When considering whether now
might be the right time to buy or whether you should wait out the
market, it must be taken into consideration that owning still remains
profitable even in the event prices remain the same or possibly even
fall further.
If you are in doubt about the right steps to take it is important to
remember that the general rule of thumb when making large purchases is
to wait until you are sure the conditions are set to make a good deal.
In some areas, housing prices have actually fallen substantially.
Consider the amount of money you could actually save if you were to wait
just a bit longer to buy a home.
Choosing the exact right time to buy a home is certainly not easy. Of
course, most buyers would love to choose the perfect home at exactly the
right time. The high demand in recent years has unfortunately created a
situation in which many buyers find themselves involved in bidding wars.
Currently; however, buyers do have a wider range of choices than in the
past few years and home sellers are now ready to negotiate deals they
never would have thought about just a few short years ago.
In the end, the decision to buy a home now or continue to rent and wait
out the market a bit longer is a personal decision which should be
dictated only by your financial situation and your desire to own a home.
When making your decision; however, do keep the following in mind:
Always take the time to actually run the numbers. You can find a variety
of financial calculators online that can assist you in determining
whether buying or renting is the best move for you. Factors which can
play a role include tax deductions so always make sure you review your
taxes carefully.
In addition, make sure you are thinking in terms of both long term and
short term. While many home buyers imagine they will remain in their
home for years to come, the truth of the matter is that something
unexpected can always arise which may require you to relocate.
Think about not just the tangible aspects of owning a home but also
intangibles as well. While it is never a good idea to let your emotions
rule the decision of buying a home or continuing to rent, emotions
cannot be denied either.
So, is it better to rent or buy a home now? Well, remember that
unless you are being evicted from your current residence for some reason
there is no reason to make a snap decision and rush into anything. You
have plenty of time to decide whether it is best for you to continue
renting or go ahead and take the plunge to buy a home. Ideally, it is
best to wait until you are completely comfortable with the idea of
buying a home before you actually begin the process.
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