Renting or owning?

September 16 2016
Home ownership

After couple of years renting, you probably assume that you are ready to become a homeowner and buy your own house or apartment. But, before you even consider that option, you have to think carefully and analyse your current financial or other private reasons. Therefore, before thinking about actual removal, check the following tips and decide whether you are ready for owning or you should continue renting.

You are in debt

If you are in debt and you give away your pay check for credit card bill, loans, etc., the last thing you need is a mortgage. You need to have some disposable income even to consider getting a mortgage and transiting from renting to owning. This is an important factor to consider when thinking about removal.

You have a bad credit history

If you have late or missed payments on your credit accounts or other loans, you are not eligible for owning because mortgage lenders consider this factor as a crucial one. This shows them how responsible you are when paying your debts. They automatically assume that you will do the same with a mortgage too. This is why it is smart to wait until you get back on track with your creditors. And then, you can contact lenders.

You have no savings or regular income

When you are renting, if you have toilet leaks or nay similar issues, your landlord will help you to fix it. So even if you do not have savings for such emergencies, you can rely on someone else. However, as a homeowner, you have to rely on yourself alone and be prepared for unexpected situations. You have to have savings on your account. Otherwise, you are not ready to become a homeowner. People who do not have stable jobs and regular incomes shouldn’t consider purchasing a house or an apartment. The fact is that no job position is 100% guaranteed for good, but it is easier to leave the rented apartment than sell a house.

What about a down payment?

Home ownershipDid you know that you need to secure a down payment of at least 20% when buying a house? Do you have that kind of money? And if you do have that amount, are you ready to give it up and be left with no savings? You should probably wait, grow your savings and have enough cash for a down payment, and ensure you are left with some too.

You are a “mover”

Some people need a change in their lives and they decide to move. They are not doing it for logical or practical reasons. If you are that kind of person who likes to experience different living surroundings, then perhaps owning a home isn’t for you. It would be a lot more practical and convenient if you rent.

Carefully consider above mentioned tips before you decide it is time for removal. Should you opt for renting or owning? If you feel like the time has come for you to become a homeowner, then good for you! If you are not ready yet, don’t worry. You probably need more time to get your financials in order. Good luck!