Deciding to purchase a home is one of the biggest decisions you will make in your life. It’s a huge investment and your biggest asset. However, I suppose that last statement can be retorted by some. In 2016, we are finally shedding the “shell shock” that we felt during the housing crisis. Those leading the charge to own homes are surprisingly the “millennials”. They are tired of renting and moving from place to place. They have also managed to save and sock away a nice house fund after years of saving. But the question still remains as to whether owning a home is more beneficial for most. Home economists will agree that owning a home bodes best for the majority of the population. There are factors to consider.
1. How long to you plan to stay in the home? Some experts feel that you should stay in your home for at least 5 years before moving on.
The longer you stay in your home and keep the home in good condition, the more equity you will build in your home.
2. Price of the home and what the interests rate are at the time of purchase.
Obviously if rates are horrible and prices are astronomical, you may need to hold off on purchasing. You don’t want to put yourself into a position where you are completely “house poor” before even making your first mortgage payment. Right now,interest rates are at the lowest they have been in several months and home prices are profitable yet affordable.
3. Are you a saver?
So this kind of goes back to point number 1. Equity is like a nice little house savings account that you obviously can’t touch until selling or refinancing. However, if you are a disciplined saver by nature and put away every month, then the buying route may not be anymore beneficial than renting.
4. Is your job what holds you to a particular area?
Are you working at the only booming company in town? If you answer yes, than buying may not be for you. If the company were to shut down, you may be left holding the proverbial bag in the form of a weighty mortgage you can no longer pay. If your talents can take you to another form of employment, or your location is booming with jobs, than owning a home most likely will be the best bet.
Being able to reflect upon these 4 points can help you may the decision to buy or rent a home. As always, when you are ready….the Move Virginia Team will be here.
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