Owning a home is something many young people dream about, but figuring out if it is time for you to buy a home versus renting from someone else can be extremely challenging. This article sets out to answer that question – should you buy a house or keep renting?
What location do you want to be in?
When deciding whether to buy a home or continuing to rent, it is important to consider how long you are going to be in your current area. If you’re going to stay less than two years, renting is usually the better option. However, if you plan on staying in the place you’re moving for 2 or more years, buying is most likely the better option. It will allow you to make the changes you want and truly make the home yours. In addition to this, it is very likely that you will be able to make money when you sell your home assuming you were smart with the loan you got.
Overall, when it comes to should you buy a house or keep renting, location is one of the most important factors to consider. Specifically, how long you’ll be living in the area you’re considering. The longer you plan to stay, the smarter it is to buy!
Are you financially ready to buy?
The biggest reason most people keep renting, from what we’ve seen as real estate agents, is because they don’t think they can financially afford a house. They plan on staying in the area for a long time, but they think you need 20% down in order to purchase a home. This, however, is actually far from the truth.
USDA is now offering 100% no money down financing in certain areas, and FHA allows you to get loans with less than 10% down, sometimes as low as 3.5% down, all across the United States. Additionally, a house payment is typically cheaper than renting an apartment, so if you can afford $650 per month in rent, you could buy a $130,000 home for $25 LESS per month.
I would suggest talking to a local lender in your area. They will be able to give you the best advice when it comes to getting a home loan. Call a real estate agent and simply tell them, “I’m interested in buying a home, but I need to talk to a lender. Who would you recommend?” Any good agent will be happy to get you two to three recommendations of all-star lenders in your area.
*Just a quick side note. Online lenders like Quicken are usually horrible to deal with. Stay local as these are people you can meet face-to-face and hold accountable.
Are you emotionally ready to purchase a home?
What do we mean by ’emotionally ready’? Well, the answer is simple. Buying a home is a taxing process, and even if you use our 4 Stress Reducing Tips Every Home Buyer Should Know, you’ll still most likely be an emotion wreck by the time the home buying process is done.
Additionally, you need to be emotionally ready to keep up with owning a home. Mowing the lawn, cleaning the gutters, pressure washing the sidewalks, these are all things you never have to do as a tenant that will become part of daily life as a homeowner. Are you ready to give up your Saturdays for this? If so, it’s time to buy a home!
Can you fix a toilet?
This may seem a little odd to include, but there are a lot of little things that can and will go wrong when you own a home. From the toilet leaking to changing the furnace filter, these are little things that you need to know how to fix before jumping in and buying a home. Luckily, there are tons of videos on YouTube telling and showing you how to do all of these different home improvement projects, so it’s not as big of a deal if you don’t know how to do them when you first buy your home. You, however, need to be ready, willing, and able to learn them as time goes on and problems come up. There is no reason to call a handyman to change your air filter. He’ll most likely laugh at you and then ask for $150. Learn to do it yourself, and save the money.
Overall, the little things that go wrong in a home are easy to fix as long as you’re willing to learn from YouTube/Google how to get the job done. If you aren’t willing to learn, stay in the rental and call the landlord for repairs. If you are, buy a home you can call yours! You’ll build equity, and over time, you’ll make much more money and be more financially successful because of it.
In Conclusion: Should You Buy A House or Keep Renting?
Deciding whether or not you should buy a house or keep renting is one of the hardest decisions you will ever make. Truthfully, however, it just comes down to some simple and basic decisions. Are you going to be staying in your home for more than 2-3 years? Have you talked to a lender, and can you get financing? And, lastly, are you okay with having to keep up with the maintenance of owning a home? If you answer yes to all of these questions, you should buy! It just makes sense. You’ll make more money over time, and if you keep renting, you’re just throwing money away.
Contact us if you are looking to purchase a home anywhere in East Tennessee. You can also call Patrick or me anytime! Patrick: (423) 312-4543 Nic: (423) 748-0999