Renting may have its advantages and convenience and offers the flexibility but you are paying for it in the long run. Buying a home now could be the smarter option and if you dislike having a landlord, sharing walls with loud neighbors up until the early morning and want to build your personal financial net worth then we need to talk.
What You Need To Do:
- Start looking at what homes are available and get an idea of the prices of homes in the area you like to live.
- Use a Rent vs. Buying Calculator to compare your costs.
- Even if you find out that buying will cost more, consider the important tax breaks you will find. Also, you will build your net worth and wealth, the ability to borrow against the equity in your home. Also, you won’t have to worry about rent increase!
Start writing down everything you want and need in a home. Use this as a framework for what houses you want to look at. After researching, you may find it may be the best time to buy is now. Consider your family, career and interests, and then come up with the type of house that fits your lifestyle.
Start asking yourself these questions for the decision process:
- Where will you be in 5, 10 or 15 years from now?
- Do you have kids or plan to have them in the future?
- Does your job require you to travel or move for short periods of time?
- Do you have the time to maintain a home and yard?
- Do you want to live close or far from work?
- Do you want to live near shops, restaurants and the entertainment?
- How much true living space do you need?
- Do you want to live in or outside the city?
Study this list after you answer the questions. Refer to this when you are researching homes. Example, if you know you’re moving in the next few years, why buy? It wouldn’t be financially smart unless you want to invest in the home and then rent the home out when you move.