The Annual Dilemma: Keep Renting or Start Searching to Buy Your First Home
Buying Renting
Every year that dreaded renewal month rolls around and you’re faced with the same dilemma. Do your sign another lease renewal and keep renting or start searching to buy your first home. With so many factors to consider, it can get overwhelming to decide if it’s a smart move for you and your family.
But if you find yourself nodding along with these 6 points, it may be time to get serious about finding your first home. Take a deep breath and read on…
Buy Your First Home or Keep Renting? 6 Factors To Consider
1. Examining Finances
This is an obvious, yet tough task, that shouldn’t be overlooked when making the decision to keep renting or start searching to buy your first home. Look at your finances and determine if you should continue to save some cash to pad your down payment or start exploring financing options and make the move.
Remember to budget for decorating, repairs and maintaining your property so you can keep the value high. One rule of thumb for figuring out this number: your home should cost no more than 2.5 times your salary.
Learn more money tips for first time buyers: “A Credit Score Checklist: Home Buying Tips For First Time Buyers”
2. Future Growth
If your future needs are (literally) growing, you can’t exactly renovate a rental. There’s only so many storage tips you can take from Pinterest before you start to realize that your current space just isn’t working anymore. For a growing family, upgrading your home is often a logical next step.
Is it time? “Considering Moving to a Bigger Home? 5 Signs You’re Ready”
3. Empty Nest
On the other hand, if the kids are gone, you might have some extra cash on hand to finally own a home. But, don’t waste money on space you don’t need; empty nesters can get away with downsizing to a smaller space to save on utilities, cleaning time and repairs.
Get more advice: “Do’s and Don’ts of Downsizing Your Home”
4. In the Neighborhood
If your neighborhood where you rent is heading in the wrong direction, it might be time to start searching for a new home. There’s no shame in moving your family to an area where you feel safe and secure…and one with great schools.
Learn more: “Moving With a Family: 4 Key Ways to Find a Great New School District”
5. Lifestyle Changes
Whether you started a new job miles away or your current commute is starting to take a toll on you, moving closer to work has a lot of benefits. Similarly, if things are starting to get serious with that ‘special someone,’ buying a new home together might be in your near future. While it can be tough to predict what’s going to happen over the next five or 10 years, if your plans include getting married or switching careers, take that into consideration when faced with signing your lease renewal.
Don’t forget these: “5 Commonly Overlooked Benefits of Buying a New Home”
6. Dream Board
When you realize your current rental isn’t supporting your dreams and you’re ready to move on, it’s ok to start looking. If you feel that constant tug in your heart and you’re financially in a place to do it, don’t hold back.
Ultimately, buying your first home is a personal choice (probably one of the biggest choice you’ll ever make in life); you must weigh your own circumstances and look at your future needs. Since it depends on a lot of individual factors, your first step is to get yourself (and your finances) organized.
Find out 5 more things to keep in mind: “Five Helpful Tips for First-Time Homebuyers”
Not sure where to begin? Talk to a professional real estate agent who can help you make the right choice and guide you through the journey of owning your own home when the time is right.
