The decision to buy or rent can be a difficult one.
There are key benefits to both housing options, so prospective residents need to decide which route to take. In order to come up with the best housing solution for you and your family, you need to make some key considerations before you move forward.
Before hitting the market, ask yourself these 4 key questions, first.
What’s My Budget?
On average, renting is usually far less expensive than buying.
While both options come with their fair share of expenses, buying a condo will almost always be a heavier financial burden. Buying a condo means meeting the down payment requirements, paying a monthly mortgage bill instead of a rental fee, hiring a real estate agent and attorney to assist during the sale – the list goes on.
On the other hand, renting comes with upfront costs, too. Renters are usually required to first, last, and security in addition to some other basic expenses.
It’s a good idea to take a serious look at your current financial situation and see what your budget is. If you’re not quite ready to buy a condo, it may be wise to rent for a while and save up the funds you need for the purchase.
What Are My Long Term Goals?
You can’t just pick up and leave once you’ve bought a condo. As the owner, you have certain responsibilities that cannot just be dropped on a whim. Buying a condo is a long term commitment, so always strategize with the future in mind.
Renting offers much more flexibility compared to buying. Most traditional condo leases are good for one year, so it isn’t difficult to plan your next move if you’re interested in switching things up.
Consider what your long term goals are before deciding whether to rent or buy a condo.
Are You Ready for a Mortgage?
If buying is on your mind, mortgages should be, too. Applying for a mortgage isn’t an easy process. The only way to secure great loan terms is by preparing your borrowing position. If your credit score is low or you have large outstanding debts, you may not want to apply yet.
In the meantime, renting can be a great option while you work on strengthening your borrowing position.
Buying Means More Responsibilities
If you’re thinking about buying a condo, you need to make sure that you are ready to take on the added responsibility.
Unlike renters, property buyers are taking on a long term commitment along with their investment. There’s no landlord to call when something goes wrong. Instead, it’s all up to you.
Buying a condo puts you in charge of the things that renters don’t have to worry about. Condo owners are also responsible for making payments and repairs as needed. Homeowners’ responsibilities are nothing to mess around with, so if you’re not prepared, it may be wise to stick to renting.
Make these considerations when deciding whether to buy or to rent. To view available condos in California, visit my website.