Should You Rent Or Buy At This Time?

Posted on: 16 March 2017

If you are going to be moving soon and you haven't quite decided on buying or renting, then you want to learn about the benefits of buying and the benefits of renting so you can come to the best decision for your current situation.

Renting gives you time to better your situation

If you currently feel that you could be in a position to buy, but you definitely still have areas you could work on to improve your buying power, such as time on the job, salary, credit score and savings; renting will give you extra time so you can continue bettering yourself in these areas. This way, you will be able to live in a nice rental until you feel you are in a much better standing. This will make it easier for you to get a home loan and it will help you to get one with a lower interest rate which will save you a lot of money.

Renting gives you time to find the perfect area

If you have no idea where you want to buy then you would feel a lot of pressure at this point in time looking for a home and trying to learn all you can about potential areas you would be interested in living in. In this situation, it may be better to rent while you study the different prospective areas. Once you know where you want to end up then you can start the buying process.

Buying puts your money toward ownership

If you are in a good position to buy and are wondering if you should take the leap, then you'll want to consider the huge benefit that comes with purchasing a home. Instead of putting money toward someone else's mortgage each month, you would be investing in your own home.

Mortgage can be a lot less than rent

When you buy your own home you can end up saving yourself a lot of money. When you rent from someone they collect that rent to put some toward their own mortgage and to put some in their pocket. When you buy a home you will only be paying the amount needed to cover your own mortgage. In some cases this can save you a whole lot of money. This is especially true if you are renting in an area where the rents are high and you buy in a more modest neighborhood.

For more information, talk to a professional like TitleSmart.