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Deciding Between Renting and Buying a Home

Is now the right time to buy a home, or is a rental property a better choice for you? There are a number of different factors that come into play when you are trying to make a decision about the right real estate for your lifestyle. A good way to get started is to talk to a real estate agent serving Southlake to get an idea about the local market and what kind of real estate is for sale. Consider these factors before your next move.

How Long Do You Expect to Stay?

Buying a home is a commitment. It means that you expect to stay in the area—and often, that same property—for at least the next five years. If you are settled in your career and don’t have the itch to sample other cities, then buying a home could be the right choice. On the other hand, if you think there is a good chance you could get transferred in your job or have an incentive to relocate, you can save money on closing and selling costs by renting until you feel more settled.

Do You Have a Down Payment?

It is possible to find mortgages with lower down payments than the industry target of 20 percent, but that doesn’t mean there aren’t complications associated with putting less money down. Sellers may opt to choose offers from buyers who offer more money up front, and if you do get the house, you may need to carry costly private mortgage insurance, which will increase your monthly payment.

What Are the Monthly Costs?

Sometimes, rent can be more expensive than mortgage payments. However, it is important to factor in other costs of ownership, including property taxes, HOA dues, and repairs, that you don’t have as a renter. Draw up a realistic monthly budget and decide if buying or renting fits better with your income. Don’t forget to account for things like retirement savings and investments, so you can be sure you’re making the right financial choice for both the short and long terms.

Categories: Buying a Home