Deciding when is the right time to buy a home can be confusing and difficult. Is it ever the right time? There are so many different aspects to consider when making a huge life decision. Is now the right time to buy a home, or is renting the better option?
There are pros and cons to both choices, and the answer depends on your individual circumstances and plans for the future. Here are some things you may want to consider when deciding.
Costs
During the economic slump, rental costs rose and home prices fell as many people moved from owning to renting. As the economy continues to improve, home prices are rising faster than rents, which are starting to flatten out. However, home prices are still relatively low, and mortgage interest rates remain near historic lows. You might want to consider buying while the combination of reasonable home prices and low mortgage rates is still available.
Budget
If you're in an entry-level job and paying off student loans, money might be pretty tight now. A few years down the road, you may have landed a better-paying position and paid off other debt, which would put you in a better position for home ownership. If you have already paid down most of your debt and have been able to start saving, home ownership may be the best next step.
Savings
Most mortgages require a significant down payment — often 20 percent of the purchase price. To rent an apartment often requires first and last month's rent and can include a security deposit. It is smart of have a savings account that is specifically designated for household expenses whether that be an account to save up for a down payment on a home, or saving to have enough money for upfront renting costs.
Flexibility
If you think you may want to move within a few years, renting might be a better option than buying. There are up-front costs associated with buying a home, so the longer you own the home, the better a deal it becomes.
Responsibility
A home needs regular maintenance to maintain its value. If you don't want to devote the time or money necessary for upkeep, you may prefer to leave all those details to a landlord. If you are looking to take on a more hands on approach to your living situation, you may be glad to be in control in your own home.
Still undecided?
A
mortgage specialist at Rockland Trust can help you decide whether now is a good time for you to buy a home. He or she can explain options for making mortgage payments affordable and explore what fits into your budget. Stop in to
one of our branches to discuss your options
