Is Now a Good Time to Buy?

I love hearing this question from anyone looking to rent their next home. While many agents will tell you it's always best to buy, I'm here to say it depends. It depends on your situation, your plans, family size, your job status, etc. 

Reasons not to buy right now: 

  • You can't see yourself living in one place for more than one year
    • Some people love to move around and change scenery. They don't like to be tied down to one place and the urge to move around. 
  • You're moving back home in one year or less once assignment is over
    • If you're like many professionals who travel to a different city/state for work related reasons and foresee your stay for one year or less, then it's best to rent.
  • In an unstable relationship
    • Being in a unstable or rocky relationship can make homeownership a problem, especially if both will purchasing the home. It's best to seek counseling and talk about the future to decide if homeownership is something you both desire....together. 
  • You're getting laid off
    • It sucks knowing that the company is shrinking and lay offs will be handed out like paper plates at barbeque cookout. Unfortunately, owning a home may become more of a burden renting at this stage. 
  • Bad Credit
    • Bad credit is a tricky one.  I know a few mortgage companies who will make loans to clients with a credit score as low as 580.  If your financials are in order and your score is 580, we can look at many things to determine if it's in your best interest to rent now.  If your credit score is less than 600, I suggest credit repair. Click the link below if you need help with your credit. 

Repair your credit today with Lexington Law

  • Bad debt ratios
    • If you're severely in debt or barely scraping by, then no, it's not a good time. The best thing you can do is get your finances in order. 
  • Always on the road
    • Do you love living on the road? Maybe you stay at hotels while traveling and live in study. Perhaps buying is not the best option, at least not now. 
  • Renting is cheaper
    • Ironically renting can be cheaper in some areas. Compare how much you will pay to own vs to rent and see which one best fits your budget. 

Reasons to Buy Now: 

  • Interest rates are expected to Increase
    • Although interest rates have raised, they are still very low.
  • Reaching the American Dream
    • I remember growing up and always hearing about the American dream, and always owning a home was part of that dream. Waking up to a place that's yours creating memories to last a lifetime. 
  • Cheaper than renting
    • Rent prices keep going up and are expected to do so. When you purchase a home, you can choose fixed interest rates to have one fixed mortgage payment. Notice how every time you renew your lease, your rent goes up? 
  • Ready to Settle
    • If your family is growing or you're getting married, it's only natural to find your own little nook to call home. 
  • Great Credit Score
    • If your finances are in order, than it's best to own than to throw your money away renting. You can get a very good interest rate, and your monthly payment may be less than what you'd pay renting. 

Truth is, there are many reasons why you should own a home, and why you shouldn't.  Whatever decision you make, it has to make sense to you. It has to meet your needs and at the end of the day you need to walk away satisfied. 

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Post Category: Home Buying, Housing Market, Houston Living

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