My seller thought she would rent for a while after a divorce forced the sale of her home. She simply couldn’t afford that house on only her income. As I looked for rentals in her price range and location, I saw that she could possibly purchase a home for less per month than she could rent. Her credit remained good, but she was out of cash for a down payment. A gift from her parents for the down helped her make the decision to look for a new home. Within days, we found a charming home in a great location close to her work. It’s on a cul-de-sac and down the street from a neighborhood park. My seller (now my buyer) is thrilled. Her daughter can play safely in the cul de-sac with her friends. Mom, daughter, and their new puppy can take daily walks in the park.
Even better, not only is the monthly payment less than her former house payment, but it is t$300 less than what she was going to pay in rent. Since she loves being a home owner, this was a terrific outcome for her.
Buying is not for everyone.Here are a few questions I suggest my clients consider as they make the choice whether to buy or rent.
Will you be living and working in this area for a few more years? If you know your work will be taking you out of the area in a year, it might be wise to rent.
Cash Supply? A rental requires a security and pet deposit, plus the first month’s rent. A down payment is going to be at least 3.5% of a home’s purchase price for an FHA loan. Then there are closing costs. It may take a little more time to save before you are cash ready to purchase.
Do You Like the convenience of calling the landlord when a home needs repair? Some people do not want the responsibility of maintaining a property. Renting is best for them.
If you like knowing you can paint the walls, plant flowerbeds, and change the carpet, owning your own place is important. Buying is for you.
Buy or Rent? It’s a personal decision, but one I’d be happy to discuss with you!