Wouldn’t it be nice if we had a crystal ball to see into the future and know the answer to the burning question: “Should I rent or buy my next home?”
What lies ahead may not be certain, but you can rely on the expertise at Two Roads Lending to guide you down the path to answer this question and reduce your fears of home ownership.
The housing market is like all other markets. It can go up or down. We advise our customers to keep the focus on meeting your housing needs, and avoid making decisions based on fear or greed. You will make a much safer decision.
Ask yourself these 3 questions to help determine if home ownership is right for you now:
What are your housing needs?
Remember to look down the road a few years at your future needs and outline what size and type of home would best meet your requirements.
Can you purchase the house that meets your needs for the same amount you would pay to rent it?
Each location and home is unique. If the home that meets your needs is for sale, buy it! Just remember not to overpay. If you if would cost you on a monthly basis to own it is more than what you can rent it for, you may be overpaying on the purchase price.
Will you live in that house for at least 5 years?
This is a good rule of thumb if you are looking at a 30-year fixed mortgage. circumstances change, but if your plan is to be in the home for 5-6 years, that often allows enough time for a home loan to be paid down by the same amount that it would cost to get a home sold – even if the market was flat (no increase of decrease) during that time frame.
If you answered “yes” to all 3 questions, then now might be the time to buy.
Yes, there are pros and cons to both renting and purchasing a home. Home values may go down, but rent prices can increase too. Home prices and lending rates could also go up if you wait to purchase.
These are all valid concerns and could cause fear because we don’t know the answers. Making decisions based on reactions to fears of the unknown is not a recipe for making wise choices. The best choice is to make decisions based on what we do know about our current and anticipated housing needs.
If you would like help answering the question “is now the right time for me to buy?” please contact us and let’s start the conversation.
