One of the most significant decisions that every individual has to make is whether to rent or buy a house. Most people lean towards purchasing a home; however, not everybody is cut out to buy a house. This is because the level of earning can never be the same for everyone.
Whether to rent or buy a home is a decision that will affect how much money you will be left with at the end of every month. That means that your lifestyle might change depending on the choice you make.
Many are the days when people are out there buying homes, while in reality, their financial situation only allows them to rent apartments. It means that the life of such an individual will fall out of balance. Most of the money being earned will be going towards paying the mortgage. At the same time, a good number of people are renting, while their bank statement is enough to pay down payment for a house. So it is crucial to know which category you fall, and which decision best suits you.
Renting.
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Around one in three Americans rent their homes according to the United States census report. So a third of Americans are renters. Comparing the cost of renting and owning a house is lower, and even though most people say that the monthly rent does not generate any equity, you must pay to live in another person’s home.
One of the reasons why renting may be a wise decision for some people is because some people earn less—making a commitment to pay down payment may strain the lifestyle of an individual to a point where they will be working just to pay the mortgage. Apart from housing, people need to pay for schools, transport, food, healthcare insurance, and have fun. So if all the money goes to pay for down payment or monthly mortgage, then life might be unbearable.
Buying a home.
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If the monthly mortgage is approximately equal to the rent you are willing to pay, then buying a house will be a great idea, it is a decision that will not strain your finances. However, if the rent you are paying without straining financially has to be multiplied by two or three to get to the monthly mortgage fee, then it is a bad idea to buy the house. You will not enjoy life in the new home, the bills will press you, and you might need to get a second job and also cut on most of the expenses to keep up with the bills.
Owning a home is great because the monthly mortgage payments are going towards buying the house, which is better than renting. After all, the rent will not go towards building any equity. However, not everybody should go buying homes, assess your financial situation before making the big decision that will determine the course of your life over the next decade or two.
Get a realtor.
Most people are not sure whether to buy a house or rent; there is the issue of not being sure whether you qualify to be a homeowner. The first step will be finding a realtor. What most people do not realize is that real estate agents have experience in real estate matters, and they can give great advice on the best options for you, depending on income levels. Realtors know how to sell a home because they interact with home sellers all the time. They know the best deals for low-income earners and average income earners. Go to Upnest and look for realtors near me. Take a look at the reviews to find the most experienced one around your location.