subject: Should You Rent Or Buy A Home? [print this page] Life is so fast-paced these days, which is something most of us can definitely agree with. Renting or buying a home is one of these decisions we don't often have time to think about.
To Rent or to Buy Your Home Which is Better?
To rent or to buy - that is the question - and a very hard one to answer for a lot of people. We've been there before so we know how it feels. However, rent when you have to, buy when you can. This statement is only too true, and here is why.
Renting can be a big plus for certain people. These advantages would manifest themselves for people who are always "on the go" due to work-related circumstances, people who need to travel cross-country for certain reasons, or low-income families with bad credit or no credit who cannot afford their own house. All of the above circumstances would be most conducive to renting. Renting is the perfect opportunity for those who have to be on the move to be on the move. Every month, a new residence, with no commitment to a certain piece of property. Moreover, the documents required for renting are aphoristic, as opposed to the documents required for buying or selling property. In addition, those with low income and credit scores should also consider renting. Simply put, applying for a mortgage loan if you have a poor credit score is an exercise in futility - not only would you have to deal with usurious interest rates, you will also have to make monthly payments that are downright expensive.
But you have to take note it is far more advantageous to buy than to rent if you could. You might say that simply reading the paperwork needed to buy a house is like pulling teeth with Vaseline, and the commitment involved can be trying, but so what? Owning a home is a privilege that not all Americans can afford, so if you can afford it, there's no reason to exercise trepidation. And here's why - home equity. Equity is essentially the value of the home. Equity often increases as time goes by, and in some situations, such as the current price hike phenomenon in California, it could actually skyrocket in value over time! This is a huge opportunity for any homeowner to have a lot of spare cash in reserve, as these occasional jags can really drive up the price of a piece of real estate. Equity has yet another benefit for homeowners - they can apply for home equity loans based on their property's value, and qualify for some deliciously low interest rates.
Take note of the caveat - it would all depend on your credit-worthiness. There is no way to underscore the importance of maintaining your credit rating, saving up for the future and making a healthy income. A good credit score allows the person to obtain lower interest rates on mortgages, a good amount of savings allows a higher down payment, and a good income allows the person to make the payments. When this can be done, buying is definitely advised. Renting has its benefits, but buying is always better.
