Becoming a homeowner is a significant financial aim for people across the globe. Buying the home is always referred to be the smart choice. However, the financial costs that take up during the purchasing of the home have grown too much high in recent times which has made it difficult for people to buy the home. Apart from this, there are many other reasons to rent a home rather than buying which home renovation contractors recommend you to take seriously before making any decision.
Might Move in the Next Few Years
The decision of purchasing the home with the fact that you may have to move in a few years can be devastating. Besides the purchasing amount of the home, there are some other expenses like association fees, taxes and costs over remodeling work. Moreover, the selling work also costs you some money. The important thing to consider is the breakeven point which means that your home appreciation will offset your purchasing and selling costs. In general, it takes at least 5-7 years to reach this point which means you should rent the home if you are looking to move from the are.
Housing Market Is Too Hot
If you are planning to move into a certain neighborhood or society but the market there is overpriced then it’s best to let things cool off. Moreover, the higher demand can lead to the bidding war which also causes increases in rates for the people looking to buy home. Further, if you are not able to pay the down payment of 20% then it would cause you to pay extra money on monthly terms over private mortgage insurance.
The status of your job has a major role to play in buying the home anywhere in the world. Contrary to the rental houses, you do not have the luxury to move on immediately in changing of financial position in case of leased or purchased apartment. Therefore, making any decision, take an honest review of your employment condition. If you have doubts over your future income status then it would be ideal not to purchase the home.
Buying Results in Longer Commute
The home available in your price range is in ara that is far away from your working place than renting a home would be a better choice. Most of the times people ignore the commuting costs which they should in order to make the right decision for themselves. Commuting can cost an extra 10% to the buyers in the form of time and petroleum costs. Moreover, this longer travel on a daily basis can impact your health and lead to mental and physical stress.
New to the Area
Have you just moved into the town? it is generally tempting to buy the home right away but it will take at least 6 months in order to know your area. During this time, you can get to know which is the best area to live in or what property costs normally are to avoid any kind of fraud. Therefore, it is recommended to you to give yourself some time to get in touch with the neighborhood.
Apart from these problems, home renovation contractors recommend to keep remodeling costs in mind that will be made for changing the environment according to your requirements.