Are you thinking about moving to a new area? Have you been looking at available housing? If you're trying to decide whether to buy or rent, here are some questions to ask yourself:
Am I planning on being in the area for a short time? Are you going to be moving again in another 18-24 months? If so, property rental can help you move from place to place without having to deal with selling off the home you're leaving. Selling a home can be an agonizing prospect, often taking several months to finally complete.
Will my credit impact my monthly mortgage? If you have some issues on your credit report, it could result in you having to pay a higher monthly mortgage because mortgage companies will perceive you as a bigger risk. If the bank deems you a higher risk, they could demand a larger down payment or give you a significantly higher interest rate. Moving into a rental home will allow you to make payments on your debts and resolve any outstanding issues before you apply for a mortgage.
Am I anticipating a boost in income in the future? Mortgages are based on your income, so if you're expecting a significant financial increase, wait until you've gotten that pay raise. It could mean the difference between being able to afford a home in an undesirable neighborhood and a much better one in a nicer neighborhood.
Do I want to move to a new area? If you're moving to a completely new city, property rental can help you when you first move to the new area. You can move into your rental home and then scout the area at your convenience so you don't have to hurriedly choose a neighborhood. Choosing a house in a hurry could mean you end up in a crime-infested area.
Are repairs something that I can afford? In a rental property, most maintenance and repairs are done by the landlord. If you were to buy a home tomorrow, would you be able to afford any repairs or replace any major appliances? Although it doesn't always happen, many homes are put up for sale because of defects that the owner no longer wants to deal with.
Do I want to buy a home to make money off of it? Although many people hope that their homes will appreciate in value over time, there are times where homes lose value. It is no longer a wise decision to buy a house solely as an investment, because you may end up selling it at a loss.
For more information, contact ABA Rental Properties Inc. or a similar company.