Buy a Home or Rent: 3 Key Factors You Need to Decide
Q: I’ve been paying rent for years now and have nothing to show for it. Real estate prices in my area seem to be going up, so should I buy now or keep renting? Kelly, Hoboken, NJ
A: That’s a great question, Kelly. Although there are many tax benefits and wealth-building benefits to owning property, it’s important that you make financial decisions that are best for you based on your individual goals and your personal financial situation.
With that in mind, here are 3 key factors that you should consider in deciding whether to buy now or continue renting:
1) What you can reasonably afford (this trumps all other factors and concerns)
2) How long you plan to stay—there are costs associated with buying and selling property and if you don’t plan on staying put for at least a few years, buying a home may put you in a vulnerable position should you need to move
3) How much $ you have available for repairs and maintenance. Repairs and maintenance costs are normally the property owner’s responsibility, so if you buy a home, you want to make sure you’ve allocated enough money or have access to enough money to handle those expenses.
Thanks for your question, Kelly, good luck!
For more real estate tips and information, visit my blog at geraldlucas.com.