There's a time for buying a home and theirs a time for renting a home. Let me explain to you when it is the best time to rent vs. buying a home.
Renting a home
Here is the number one rule to decide if you should buy or rent a home. ฝากขายที่ดิน If rent is less than the cost to buy a home and it is a place that you'd like to live and raise your family, then by all means rent. When I was looking for a home, I found out that I'd have to pay up to $30,000 down and pay monthly payments of $1200 a month. As it turns out I found a rental in the same area for $850 that worked for my family. I get to keep my $30,000 and invest this money as I please. I also get to pay $350 less every single month and I can move whenever I feel like it. So in this cause, it was much better to rent a home. Who cares if you are not paying down the principle. Most of your money goes toward interest in the beginning of the loan anyway.
When home prices are going down, it would be a good time to rent, because if you buy a home, you'll only have declining home prices to look forward to until the market area begins to appreciate again. I've appraises many homes when the home owner thought that the market was at the bottom. It turns out that they were wrong. They purchased their home three years ago and prices are still declining. Their home keeps getting cheaper and cheaper. This makes refinancing and selling more difficult, because they are losing value and equity in their home every year that the market is declining. If your market area is caused by current market conditions, you may see a rebound in home prices, but sometimes they will never go up to the price that you've purchased the home for. But if the prices are falling in your market area and is caused by your neighborhood because of schools or crime, most likely you'll have to eat the cost of the down payment or worst yet, lose your home or live is a place that you do not feel save and live in an area that you do not want to raise your children.
Buying a home
Buying a home must meet three important criteria. First, you must be making enough money to afford to save 10% of your money. This will allow you to get into your home with some money, but more importantly, allow you to continue to pay your mortgage payment and afford to change or fix items that need to be repaired. This is an important step that many home buyers try to skip. It is just a reality. If you can't figure out how to make more money and save some of the money you make, then you should not be buying a home. If you buy a home when you can't really afford it, all you are going to do is struggle until you lose your home to the bank.
Buy when interest rates are low and there are lots of homes in the market to choose from. At this time, interest rates are some of the lowest that they've been for years. If you shop correctly and make sure that the home you purchase is not overpriced, you almost can't go wrong. Here's why. When interest rates decline, the amount of house you can afford goes up.
Let me explain this a different way. The more the interest rates for your mortgage decrease, the more expensive house you can afford. This is because the interest rates will determine your monthly payment. I'm not telling to go buy a bigger home. I'm just telling you the relationship of interest rates and home values. So if this is true, then as interest rates go up, housing prices will decline even more. This is because, all else being equal, home owners will have to pay a higher monthly payment for the same home. But since you purchases at the correct price and at the best interest rate, you have the highest probability of keeping your home and paying the lowest payment at the time you purchase your home.
Make sure that you are able to buy a home that you do not have to update or spend a lot of money to maintain. I've met many home owners who complain or wish that they would have never purchases a home that required major fixing. A fixer upper sounds romantic at first, but trust me, the romance wears off fast and the bills add up. And just sides not, if you are going to remodel your home, make sure you complete the remodel in stages so that you have more flexibility of getting a loan if you need one to finish the repairs. I've been to many homes when they decide to remodel, they rip out almost everything in the home and start to remodel. Next, they try to get a loan to finish the projects that they never finished. This is never a good idea, because banks want your home finished with no safety hazards. So start with a bathroom. Rip the bathroom up and remodel the entire bathroom. Next, go to the next project.
So when you're deciding to buy or rent, use the above guidelines to help you. And trust me, sometimes it is better to rent and if you don't believe me, ask 100's of home owners that owe more on their home than they are worth.
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