Both mortgage rates and rent prices are rising, which makes the “rent or buy?” question trickier than ever. While this has caused some would-be homebuyers to put their plans on hold, you may not be content to do this, especially if your rent continues to increase with every new lease. While interest rates are a big consideration when buying a home, there are other important factors to consider.
Are you ready to put down long-term roots? If so, it could be well-worth buying now. However, if you’re planning to move again in a few years, this stategy may end up costing you any equity you earn, especially if property prices stagnate.
Are you prepared to take over maintenance? Unless you buy a warrantied new home, you may be forced with major bills during the first years of homeownership unless the previous owner has recently replaced older HVAC, plumbing or electrical systems.
What about future possibilities? For example, if you plan to buy with a spouse, what will happen if one of you are laid off? Do you plan to eventually move an elderly patient in with you? Will you still have an emergency nest egg after making a down payment?
What if you find a bargain? It could make sense to buy this home with a smaller deposit, even if you can afford to put down 20%. Here’s why: it’s important to have assets on hand to keep your investment in homeownership safe, even if you’re required to pay mortgage insurance during the first years in your new home. This stategy will help you truly enjoy the perks of homeownership without money worries.
If you have questions about home financing or you’re considering a move, contact one of our agents at the Falvey Real Estate Group 518.452.3912