If you’re one of the thousands of other people watching how wild the housing market is right now, you might be questioning, ‘should I rent or buy a house?’. It’s clear that homes are quickly going up in price, so it can be tempting to get in early and avoid having to pay even more down the line, yet you may not be sold on the homeowner’s life.
If this describes you, here are some things to consider before moving forward with trying to buy a home.
You’re Living Paycheck to Paycheck
Since the beginning of 2020, two-thirds of people have been living paycheck to paycheck. This lifestyle is dangerous because it means there may be no protection to keep these people from homelessness or protect them from sudden debt. In addition, if you’re living paycheck to paycheck, homeownership isn’t an option for you since a couple of missed days of work could lead to your home being foreclosed on.
You Don’t Want to do Maintenance
The nice thing about renting is that if the dishwasher breaks or the ceiling starts leaking, it’s not your responsibility to fix it. You don’t have to worry about paying for the repairs or having to take them on yourself, and it makes a lot of things easier in life. On the other hand, buying a home means you’re liable for anything that happens on your property, and if something breaks and you don’t fix it: it’s not going to get fixed. If you’re not ready for that amount of pressure, this isn’t the option for you.
You Live In A Large City
Living large in a big city can be a lot of fun as a renter. You can often have access to more active parts of the city without having to pour in the hundreds of thousands- to millions- of dollars that downtown real estate costs. In addition, renting when you live in a big city is often the only choice since housing opens rarely. Those that come up for sale are incredibly expensive and get purchased almost immediately.
You Aren’t Sure Where Your Life is Headed
Signing a mortgage for a home is a long-term commitment. This contract promises that you’ll pay off any bills on time, you’ll maintain the lawn, and you’ll ensure that you keep up with the HOA so you don’t get hit with random fees. If you aren’t sure where you want to be in five to ten years, buying a home isn’t a good idea. You may think it’s no big deal, and you can sell if you choose to move, but selling before you hit ten years on a thirty-year mortgage means you won’t be leaving with much.
Your Credit Score Isn’t Great
Does your credit score have a lot of room for improvement? If you have a lot of debt or you’re behind on payments often, then you should take the time to work on your credit score before you consider buying a home. Rushing the process could leave you with an incredibly high-interest rate and too many bills to handle.
