When You Should Rent a Home Instead of Buying Lenoir City TN
Lenoir City, TN
Whether you should buy a home is mainly a matter of timing, in terms of both the market and individual circumstances. Lois A. Vitt, a housing expert and financial sociologist, walks you through some of the things you need to ask yourself, and take stock of, in the following article from Housing Predictor .
You’ve decided to move. Now you face the bigger decision: Is it time to take the plunge into home ownership or continue to rent? Or, should you give up the home you own and return to renting?
If you have never been a homeowner, home ownership should definitely be your goal. The American Dream aside, investment in real estate makes sense for nearly everyone at some point. But timing is crucial. Buying a home because it seems like a good idea right now could be a mistake if the time is not right for you. Accurately and objectively, take stock of your financial situation, including your savings plan. Determine how much “home” you can afford and meet with a lender to get a sense of the mortgage you can comfortably handle. Ownership can also include unforeseen expenses: damage needing repairs, rising utility costs and taxes, and life changes that require longer commutes to workplaces and schools. Remember too, that housing choices are more than financial, so you are only halfway to making a good decision.
Look objectively at your personal situation. Is there any instability in your life—concern about your job or career, a troubled love relationship, anxiety or friction in any area? If so, now is not the best time to commit to home ownership. A new home does not repair relationships or soothe anxieties. More often than not it increases the emotional and financial upheaval than exists to begin with. Likewise, an uncertain workplace can spawn regret and financial hardship instead of pride and pleasure in a home you’ve worked hard to buy.
The next step is to realize that whether you are just starting out, raising a family, changing jobs, or downsizing for retirement, your choice of where and how to live is a confluence of many concerns. While your budget is a significant deciding factor, feeling “at home” reflects and impacts your identity, autonomy, and the needs and desires of loved ones who will be moving with you. Whether home is the center of your life or a place simply to hang your hat depends upon your comfort levels, social attachments, and other intangible factors about where and how you choose to live.
Buy or Rent?
If you are a renter but have been longing for a home of your own, that “someday” could be now. Housing is “on sale” in many—if not most—markets. Prices are down, interest rates are low, and tax incentives may work in your favor. So line up your paperwork and find an effective real estate team. Deal with a real estate agent who knows and works well with lenders. Or consider buying a new home, since homebuilders can often...