Purchasing a home can often feel like a rite of passage, but you must put the proper amount of consideration into whether you should buy or rent property.
Assess Your Financial Situation
Before you make a large financial decision (like the purchase of a home), you must assess your financial situation. Considering your financial situation could include looking at your income, your debt-to-income ratio and your savings. One general rule that some experts adhere to states that you should spend less than 33% of your monthly gross income on your housing costs. But the mistake that some people make when considering what their housing costs include is they only think about what their mortgage payment will be or what they will pay in rent. These are not the only housing costs to consider.
Estimate The Cost of Buying
You should also take these regular expenses into account when deciding if now is the right time to purchase a home. These expenses may or may not apply to a home that you want to purchase, so it’s important to do the proper research into each house you consider buying to get a more detailed estimate.
You may have other expenses associated with moving that you may not have even considered when deciding whether now is the time for you to purchase a home. It’s important to know what all your homeownership expenses are before you sign on the proverbial dotted line and unknowingly sign yourself up for more expenses than you once thought.
Pros and Cons of Renting and Buying
As with any decision, there will be pros and cons to buying and renting. When making your decision, you’ll need to determine if the pros outweigh the cons and what is a priority to you at this stage of your life. Here are a few pros and cons for each to help you get started thinking about the positives and negatives that you might face as you decide to buy or rent.
Pros of Renting
Cons of Renting
Pros of Buying
Cons of Buying
Like with most major life events, it’s important to be fully informed before making a decision. Contact the office today to get more information before deciding to buy or rent.
This material was developed and prepared by a third party for use by your Registered Representative. The opinions expressed and material provided are for general information and should not be considered a solicitation for the purchase or sale of any security. The content is developed from sources believed to be providing accurate information.
For advice regarding your specific circumstances, the services of an appropriate legal or tax advisor should be sought.