Rent or Buy? Things to Consider If You're Home-Hunting
Home ownership is a wonderful milestone hopefully everyone will get to enjoy in their lifetime. But is it always as magical and rewarding as many often make it out to be?
As home and rent prices both took a competitive leap upward during this COVID-19 pandemic and many raced to secure their first home, several are feeling a sense of buyer's remorse in their first home purchase. According to a poll conducted by Bankrate.com in April 2021, about 64% of people between the ages of 25-40 surveyed say they have at least 1 (or more) regrets about their first home purchase. Some of these regrets include feeling their maintenance costs or mortgage payments are too high, feeling they've overpaid, the house is too big or small, or they've purchased in a bad location. In fact, many even went as far as waiving inspections and offering above asking price to help them secure a home.
When thinking about buying a house, here are some factors that may be important to consider:
You have steady, verifiable income, whether from a stable job or self employment. If you have any concerns or doubts about your current place of employment or income and are considering job hunting, it may not be the right time to purchase a home.
You have sufficient money saved. On top of having money for a down payment, you will also want to be prepared for inspection costs, closing costs, property taxes, and possibly some unexpected maintenance costs or appliance replacements.
You're planning on staying in the same place for a few years. Remember, the housing market is cyclical--prices don't always go up. If you were to rush into selling a home shortly after buying it, you may not always make a profit. It may help to plan to stay in a home for at least 7-10 years, giving you the chance to build more equity into the property.
You have low levels of debt and good credit. With bad credit and higher debt, it may make it more difficult to get approved for a home loan, subsequently making you less strong of a buyer in a competitive market.
Whether you're buying, renting, selling, or need your property managed, the experts here at AXIS Property Advisors can help you make smart decisions. Give us a call today at (602) 614-5590 for all your real estate needs.