There are many factors that affect the decision on whether it is better for you to rent or buy. Some of the points to consider include how fast prices go up and how long you plan to stay in your home. Here is a list of some factors that could help you decide whether you should rent or buy.
- AREA – Location is one of the most important factors for buyers or renters.
Purchasing a house in or near the city center is often more expensive than a house on the outskirts of the city. Because of the growth of the city as well as space limitations that made cities more dense, apartments are more readily available. The past two decades have seen an influx of people who want live and work inside a big city. And with major downtown developments in Los Angeles, New York, and other cities, there is an influx of young and professional residents that are moving into urban regions
- Ease of Movement. A short-term rental agreement is a lot easier to get out of than a relocation. And if you have to sell a property with little equity, you could take a big loss in your investment. If you have a stable job, and plan to stay within a particular community, buying a house will make more sense. But if you need the flexibility to relocate, or are unsure about your career track, renting may be the way to go.
- Job Security. Job security is important. The job market must be stable enough for your career, so that you will have plenty of options if your current career path does not pan out. Without this security, you will need the flexibility to relocate. Unemployment rates and job availability in your field is also an important factor to your job security. Without job security, you need the flexibility to relocate. As a homeowner there is nothing more frightening than losing your job.
Missing payments on your mortgage can lead to foreclosure, short sales, bankruptcy, wrecked credit and high blood pressure. If your employment is shaky, now’s not the time to buy. Jobs are tough to come by. Save your money and rent.
- The economy. The economy impacts the various employment opportunities that are available in a particular area. Pay attention to the unemployment rate, and gauge how much confidence that you may have that the economy is getting better or worse. A tighter economy can also make it hard to borrow money from lenders. Renting in a recovering economy can give you the time save your money and put yourself in a better position to buy in the future.
- Bad credit. If your credit is bad, lenders won’t approve a mortgage for you. A year or two renting and careful credit use can give you enough time to increase your credit score and position yourself as a strong homebuyer.
- Maintenance. The best homeowners are one that are handy in the house. As a homeowner you are responsible for all maintenance of the property. In an apartment complex, even a single-family home you might rent, the landlord or property owner direct, or through the building manager or the superintendent, is typically responsible for maintenance.
- Your relationship. If your relationship is young or on shaky ground, think about the consequences of buying a home with someone who may be out of the picture weeks, months or even years from now. If you’re dependent on two incomes to make the mortgage payments, if there could be a court fight over assets if you split, renting is probably a better deal.
When you share assets in marriage or other relationships a prenuptial or other agreement also may be a good idea.
If you have any questions about whether renting or buying will be more advantageous to your current situation please feel free to give me a call at 818-588-5728 or send me an email at anwar@realtorandyou.com
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