When looking for the best place and scenario to live that will serve our needs and financial needs, many try to decide whether they will be best served by buying a home, their home or renting a place to live. Both of these have specific advantages as well as challenges / obstacles, and it is therefore wise for individuals to decide the best course of action and, best, for their personal set of circumstances and needs. With this in mind, this article will attempt to briefly review, consider, review, and discuss 5 considerations that should go into the best decision for them to make.
First Current income: It makes little sense to be home rich and poor! Home ownership is only entertaining and satisfying when / if affordable. Therefore, the process should begin by examining his current income, what he qualifies for and can afford. In addition, it is important to proceed wisely and in a way that may create significant extra stress when other obstacles are placed in our path. Your income also determines how much mortgage you qualify for, etc.
2nd Job Security – Prospects: While you may think you can certainly afford the monthly payments and have enough extra resources for contingencies, based on your current financial situation, life often changes, whether it serves our purpose or not! Therefore, the likelihood of job security and realistic prospects should be assessed in order to best prepare them for the decision that makes the most sense for them.
Third Available Money / Payout: How is your personal cash flow as well as cash on hand? Buying a house requires a significant down payment and closing costs. When renting, he only has to make monthly payments and generally needs only one deposit and one, to two, monthly rent payment.
4th Tax Status / Considerations: Although the new tax law, for some, substantially reduced the tax benefits of home ownership by limiting the property tax deduction (maximum $ 10,000 per year), paid mortgage rates as well as these closed-level tax deductions are still tax deductible, and therefore there may be an advantage, from a tax perspective. perspective, for individuals in particular parentheses. Consider the net price per Month between owning and renting.
5th Personal goals: Are you planning to move soon, or are you new to the area and unsure if you might like to live there? In that case, renting might be a better option because it requires far less commitment and / or financial risk / Are you practical and prepared for maintenance and repair related to owning?
The wisest way to proceed is with your eyes – wide open! The goal should be to do what’s best for you, your comfort zone and goals, perspectives and goals!