Why should you rent or buy a home? Many people often find it hard to make a decision on whether they should rent or buy a home whenever they are looking for a place for their families. However, with a guide, you will be able to make a decision on whether you should rent or buy a home. Here is a guide that you need to consider:
1. The number of years you will be living in a location
If you cannot commit to staying in a place for five to ten years, owning a home is perhaps not for you. You are unlikely to see good appreciation in the prices of home prices if you want to recoup important transaction costs, like agent commissions and mortgage fees. As a family, you have to make a decision on whether you want to live in a location for a longer duration before deciding on whether to buy or rent a home in the area, we would personally recommend the Martin Modern Condo if you’re going to be living in Singapore.
2. The cost of renting and buying a home
If you are ready to take the first step, you should be able to evaluate your personal finances as a way of determining on whether you can be in a position to qualify for the cheapest mortgage by having enough money for a down payment, together with other necessities such as home inspection and closing costs. For instance, if you are paying a rent that is cheaper compared to your mortgage, then you might be able to take the money and invest somewhere that will earn you a better return in the long-term.
When you decide on Where you live, you should the housing market value as well as other factors before making a decision on whether you will buy one or not. The prices of rent or home prices can sometimes differ lot different when compared to the national averages.
3. Affordability is key
As a home buyer or tenant, you must test your capability to afford any of your target homes. You can do an estimated carrying cost such as mortgage plus insurance, maintenance and property taxes if they do exceed your present rent, and try to set aside the difference for several months. Do not look for a house to rent or buy when you know that your income will not be able to accommodate the anticipated expenses upon acquisition.
4. Know the Pros and Cons of renting or buying a home
As a person who need to buy or rent a home, you need to know the Pros and Cons. For instance, you should know that owning
a home would give you a peace of mind that no landlord will want you to pay rent at the end of the month. On the other hand, paying mortgages can be expensive in the long run.
Renting can allow you to invest the money anywhere else to earn more profits thus allowing you to own a home cheaply.
In conclusion, the above information should assist you decide on whether you should rent or buy a home for your family members.