When Do You Know You’re Ready to Buy a Home?

Buying a home is a major decision. Do you find yourself asking the question should I rent or buy a house? There are pros and cons to each option. Read below to see if your answer is yes to buying or stick to renting.

First, Calculate the Costs

You’ll need just a few pieces of information to calculate rent vs. buy, things you may already know or have been tossing around in your mind. Things like, where do you want to live, home purchase price, down payment, length of the mortgage, how long do you think you will live there and the cost of renting a similar home. Do your research. Check out cheap apartments near san jose ca or the area of your choice and compare rental versus purchase costs. Most experts agree that you shouldn’t think of your primary home as an investment. Whether you put down that exact amount or not, you should avoid buying a house you can’t afford to keep.

Second, Know the Differences Between Renting vs Buying

Renting offers flexibility, predictable monthly expenses, and someone to handle repairs. Homeownership brings intangible benefits such as a sense of stability, belonging to a community, and pride of ownership, along with the tangible ones of tax deductions and equity. Contrary to popular belief, renting doesn’t mean you’re throwing away money every month, and owning doesn’t always build wealth in the long run.

Next, What are Your Life Plans/Goals?

Obviously, you don’t have a crystal ball, but it’s important to evaluate your current life situation and how much it’s likely to change in the immediate future. You have more flexibility when you rent. Most leases are for 12 months. So, if your job requires you to move frequently, renting can be a desirable alternative to owning. A stable, lasting home is the perfect foundation for a lifetime of beautiful memories. With a home purchase, parents can impart feelings of attachment, security, and permanence to their children. This can occur if you rent or buy. Your home should be the treasure chest of living.

Finally, Do What’s Right for You

You are the chief of your choices. Do whatever feels right for you. You don’t owe anyone any explanations for the way you choose to live your precious years, and with whom. Your time is your life, and it’s never coming back. The bottom line is: sometimes it’s smarter to rent, and sometimes buying can work in your favor. Rather than giving in to one side or another, it’s more helpful to learn the rules, crunch the numbers, then do what works and feels right for you.