Should You Keep on Renting Or Should You Consider Buying?

Keys and handsYour lease is almost up and you’re now thinking it is time to stop renting and start buying. But, are you really ready to become a homeowner? A lot of renters are shocked at the responsibility and differences of home owning compared to renting. So, before you give up on your lease and start calling in real estate agents, see if you meet any of the signs that it is a good time to keep on renting.

You Don’t Have a Savings Account

You might have a savings account open, but is there any money in there? Before owning a home, you need ample savings to cover furnishings, a down payment and of course any repairs that show up down the road. Also, a good savings is a sign of financial responsibility — something a person needs if they are going to own a home. Experts recommend having three months’ worth of bills saved up as well as your 20 percent down payment before you stop renting.

Your Future Isn’t Spelled Out

You don’t know where you will be five years or even one year from now, so you shouldn’t be buying a home. Unless your future is already planned out, you need the flexibility of renting. Homeownership means staying in one location for at least seven to ten years. If you cannot for sure say you’re staying with your job, partner or in the area that long, stick with renting until you can.

You Have Not Done Your Homework

Buying a home is a big deal. If you have not researched the market or even stopped to see if you can get approved for a loan, you might want to reconsider giving up on renting. Do you have a good credit score that will even qualify for a loan? Do you know what the market is like in the area? If not, do some research first before deciding you’re ready to buy.

You Aren’t Responsible

A lot of people chose to rent because they know that they are not responsible enough to own a home. Yes, you pay your bills on time, you have a job, etc., but there is a lot more to owning a home than that. When you own a home, you have an investment that you must maintain. You’re in charge of the repairs, keeping the exterior and interior up-to-date, and carrying all the right insurance. For most renters, the price increase alone is hard to handle.

Jun 2014