Are You Really Ready to Buy or Should You Keep Renting?

For many Americans, owning a home is a dream to work toward. However there are also many renters that have no urge to own. Whether you buy or rent is a personal decision, but if you are thinking about buying there are several things to consider. To avoid getting trapped in a mortgage you can’t afford or a home you can’t manage you need to ask yourself whether you are really ready to buy or if you should continue to rent. The following are a few factors that will help you decide.

Finances

To purchase a home it is recommended that you save at least 10% of the selling price range you will be shopping in. This amount is needed for an earnest money payment, closing costs and fees. If you are unable to put aside this money while you are renting your finances will need an overhaul before you can responsibly purchase a home.

Location

In some places in the country it is less expensive to purchase than to buy a home. According to Forbes, America’s largest cities have such outrageous rent prices that purchasing a home is often more affordable. If you happen to live in one of the rural areas where rent and mortgage prices are about the same then your decision becomes more about preference.

Family

When you are renting it is easy to complete a lease and move to a larger location if your family grows. Once you have purchased a home it is a little more difficult and expensive to accommodate a growing family. This means that if a couple is planning to have a family, they may need to purchase a home that is larger, and more expensive than they hoped in order to be able to securely have a family and a home with enough space.

Physical Health

If you have any sort of medical condition which will make it difficult for you to mow the lawn or perform household maintenance you face the issue of either paying someone to do things for you or letting your home fall into disrepair. As a renter home maintenance is usually not your responsibility and you can likely find an assisted living apartment to make sure that you are safe and sound when you are at home.

As you can see there are many factors to consider before making a home purchase. There is no right or wrong, just a matter of what works for you and your family. Your finances, location, family size and health are just a few of the things to consider when making your choice. If you're not really sure, feel free to contact Sam Fine at Everest Equity. He'll help you figure out where in the buying process you really are.