When is the right time to buy a home? Most financial professionals
agree that buying a home is a smart money move. Real estate is a good
solid investment that, if done right, will increase in value and provide
your family a home for many years to come. You may have heard someone
say, “Why would you rent a house or an apartment? You’re just throwing
money away when you could be building equity in your own home or condo!”
So, is renting a bad money move? Is there a right time to rent?
As great as home ownership can be, if it’s not done right it can be
more of a blessing than a curse. There are several scenarios when
renting may be the better option.
If you’re not financially healthy, it’s the right time to rent.
If you’re deeply in debt and have very little savings, buying a home
would likely bring more money stress your way. We tend to underestimate
the additional costs of being a homeowner versus a renter. When you’re
renting, your landlord pays for the taxes, maintenance, and emergency
breakdowns. If you’re a homeowner, that’s all on you. If you don’t
have a savings account to take care of fixing or replacing appliances
and other upkeep, home ownership is going to stress you out to the max!
If you’re in transition, it’s the right time to rent.
If your life is in transition, purchasing real estate may not be the
right move for you at this time. If you just got divorced, your spouse
recently passed away, your kids have left for college, or you’re in
between jobs renting an apartment, house, or condo may be the best
solution for now. The problem with buying and selling a home is that
the process usually takes time and money. If a newly widowed woman buys
a smaller house, then decides a year later to move to another state to
be closer to her grandchildren, she’s going to have to deal with the
expense and stress of selling a house on top of moving. Renting for a
year while she processes her grief and figures out her future plans
would save her money and effort.
If you like to wander, it’s the right time to rent.
Owning a home ties you to a specific location. While many people love
this fact, there are others who feel stifled by this. If you love to
travel and would rather spend your time and money exploring the world,
home ownership may not be the right choice for you. If you own a home
and spend extensive time traveling for work or pleasure, you’ll end up
paying someone to ensure your property is cared for while you’re gone.
Renting a place may be a much better option for those happily afflicted
with wanderlust.
If relocation is in your future, it’s the right time to rent.
If you or your spouse is in the military or has a career in which
relocation is a reality, buying a home could be a financial disaster for
your family. Real estate is a good investment in a long run, but
buying then selling a few years later could leave you upside down or in a
break even situation. If you’re moving out of state, showing and
selling the home while trying to settle into a new military base or new
office culture is more stress than anyone needs! Of course, you could
turn that house into an income-producing investment and let Real Property Management handle the tenants and send you a monthly check.
There is a right time to rent and a right time to buy a home; it all depends on your individual financial and family situation.