The decision to rent or buy depends on many factors such as location, hidden costs and the current state of the housing market. Everyone’s situation is unique, so exhaust all of your options before deciding what the best move may be.
Deciding whether to buy or to rent isn’t just a matter of how much is in your savings account. Having trouble deciding whether to buy or rent? Here are five of the most important considerations.
Likelihood of a move
If your family or job are likely to lead you to a new destination in the next several years, home ownership may not pay off.
Both home ownership and renting come with costs that aren’t always apparent when calculating your monthly budget. For instance, renters will need to pay for insurance to protect their belongings. Home ownership comes with hidden costs such as association fees and home maintenance. Depending on the age and condition of a home, maintenance costs can quickly outpace the hidden costs of renting.
Location, location, location!
It pays to know the break-even point for the area where you’re currently renting or thinking about buying.
Many believe that as long as unemployment rates remain high, the housing market can’t make a full recovery. Market experts believe foreclosure rates are likely to increase and lending standards will tighten, squeezing out some would-be home buyers. If your family’s finances aren’t rock solid, renting may hold greater appeal until you can once again be confident in the job market and obtain favorable financing terms.
The answer to whether home ownership or renting is right for you depends on the specifics of your personal situation — where you live, what your housing market is like, your financial circumstances — and also on the larger American economic picture. Ask yourself some hard questions about your financial readiness to take on the obligation of home ownership. By looking at the big picture, you’ll be able to make the right decision.
For more information on renting an apartment in Glen Allen, VA, contact The Gardens Apartment Homes.
Global Economic Intersection