- Rent or Buy a home? What is the right choice? (Part 1 of 4)
- Rent or Buy a home? Weighing your commitment. (Part 2 of 4)
- Rent or Buy a home? Analyzing your fears. (Part 3 of 4)
- Rent or Buy a home? What’s holding you back? (Part 4 of 4)
One of the most challenging decisions to make is the choice between renting and buying a home. Do you select the choice which is perceived to be a life of flexibility and less responsibility but no equity? Or do you choose the other which is a great investment, provides security but comes with added maintenance cost?
What prevents renters from buying a home.
Stay tuned to this four part series as we explore a few common misunderstandings that prevent renters from buying a home.
Does buying a home make sense?
The grass always appears to be greener on the other sides, whether you decided to buy a home or rent. However, depending on your circumstance, it maybe that neither choice is better than the other. Based on your savings, spending plan, and income, you can evaluate the advantages and disadvantages of each.
Security
When you purchase a home, you have more security knowing that you are the property’s legal owner. Your monthly mortgage payment is fixed. If you’re renting, you may be subjected to an increase in rental fees.
Great Investment
If you decide to rent or sell the property, you have the potential to earn from your initial investment.
Can you afford to buy a house?
People frequently rent rather than buy because they believe they cannot afford to buy a home. Ask yourself, are you renting because you simply believe you can’t afford to buy. If this is the case, there is a simple solution. Reach out to a mortgage expert and get pre-qualified. Consultation with mortgage professionals are free. Not only will they tell you whether you can afford to buy, but they’ll also tell you how much you may be able to invest. An important step in determining whether you can afford to buy a home is to analyze your spending habits and decide how much you can set aside towards the monthly mortgage payment.
How low can you go?
Often times renters never buy a home because they believe that they could never accumulate enough funds to make a down payment. Do you know there are mortgages out there that require less than 20% down payment? Let’s look at it from another angle, right now you are paying rent. At some point in time before even moving into any rental property you were required to come up with the first month’s rent and the last month’s rent, as a security deposit……and You Did! Therefore, if you can come up with the fees associated with rentals, you may be able to save a fair amount as a down payment for a house. Consider this, your monthly rental fees could be used towards your monthly mortgage payment.
Should you buy or rent?
The question of whether to buy a home or rent one is ultimately a personal one. To help assess and explore your options, you may find it beneficial to consult with a real estate agent.
Where to find homes for sale or rent?
There are many real estate websites to find properties for sale and rent. Leighton Team has been number one in sales on Cape Code since 2020. The real estate portal lists the featured properties on Cape Cod.