With a lack of home inventory many people are feeling that buying a home is an untouchable goal. Many feel that they can’t afford to put down a down payment for a house, therefore renting a home was the alternative.
There are a few factors to consider when it comes to a decision of purchasing a home or renting a home. First, how long do you intend to live in the home? Generally, the longer you intend to occupy the property; it would make more sense to buy. Otherwise, renting will make more sense.
Second, how much upfront money do you need to buy a home? It is important to know that there are first time buyers programs available for buyers. If you have limited resources to down payments, FHA loans are a good alternative for first time home buyers. If you were to choose the first time homebuyer programs with grants for a portion of down payments, it’s critical to find out all the information associated with the down payment assistance program. It’s common for you to come up with closing costs associated with the down payment assistance programs and/or the interest rates will potentially be higher. Evaluate the monthly payment and decide whether renting will make more financial benefit to do so. Perhaps saving up for a little more down payment before shopping for a home.
Lastly, purchasing a home is one of the ways to increase wealth. For many people, a home purchase is largest investment they will ever make. Owning a home allows you to enjoy home values appreciation and a chance to gain equity. The mortgage interest paid can also potentially reduce your income taxes liability while rent payments do not have those perks.
Regardless of which you choose, leasing or renting, it’s an undeniable fact that simply purchasing the home is better; as houses are one of the few types of property that rarely depreciate over time (especially as land values rise). Consequently, I recommend saving up enough funds for a down payment and purchasing a home as soon as possible instead of renting or leasing a home. Contact me today to find out how much you can afford.