Buying your home is nearly always an emotionally charged decision involving a large amount of money. Also, the time horizon involved is usually 25-30 years and that's a long time. So you need to do your homework carefully.
There are two key factors for you to consider when evaluating whether to rent or buy. These are; the interest rate, or cost of money, for the mortgage. (You will need a deposit too.)
How much you expect the property to appreciate in value over the longer term.
With interest rates near forty year lows, your decision to rent versus buy becomes difficult. There is really only one way interest rates will go, and that's up, so you need to give careful consideration to the real cost of home ownership. When using a calculator don't forget to 'stress test' the current interest rate by 1% or 2% above where it is today. Never forget that the higher the rate of interest the more you must pay back to the bank in interest on your mortgage.
The other key factor driving your decision as to whether you should buy or rent is how much is property expected to appreciate over the next 30 years?
Irish property prices have fallen by some 50% from a high in 2007. The real question now is when will growth return to the market, and by how much? The big benefit with a calculator is that you can quickly vary a range of predicted growth rates from say, 1% to 3% per annum and watch what happens to the repayment figures as a result of your decision. Run multiple calculations
Just doing the calculation once is not enough, you should run multiple scenarios. For example: Run your numbers with different interest rate and growth assumptions. This is crucial to really understanding the break points in your analysis. You might even try doing the calculations with interest rates of say 4%, 5% and even 6%. Try also, calculating the rate your home may appreciate at different growth rates. With the property bubble it might be best to use 0%, 1% ฝากขายทาวน์เฮ้าส์ and 2% as your growth estimates for this last calculation. Remember, the higher the growth in appreciation the more you gain. Beware of the Tax Delusion
Finally, you need to beware of the tax delusion. Lots of people say to themselves: 'but I am getting tax breaks on my house purchases so it's more efficient for me to buy? Well, in Ireland, at the moment these tax breaks are only available for the first 7 years so it is usually a flawed logic to let the tax gains rule your thinking for the entire duration of the mortgage period. It's best to run the calculations with zero tax benefits to see the real long-term picture. Consult a Broker.
Cast a cold financial eye on your biggest money decision. Keep your emotions at bay until you are sure the numbers work for you. Since everyone's financial situation will be different it's always wise for you to consult a broker for expert professional advice on what's the best option for you.
ไม่มีความคิดเห็น:
แสดงความคิดเห็น