The real estate market is always changing. Before making a major purchase like buying a house, it is still a good idea to get all of the information. For example, it is sometimes better to rent a home than buy a home. Let’s take a look at whether it is better to buy a home or rent a home in today’s market.
It’s Hard To Sell A House In The Current Market
Houses are becoming increasingly harder to sell at the value you want to get. Part of this comes from it being hard for buyers to get mortgages. Another reason is the fact that people can’t afford to buy houses (more on that later).
Some areas are indeed booming with real estate sales, but these areas are typically some of the most expensive in the country. In some places, houses are taking years to sell.
The Modern Worker Needs Flexibility
Most people are working jobs that they want to move on from. The need to have flexibility in your living arrangements is a must if this is you. It is also a must if you have to regularly relocate to a new place for your job as more people are doing. Seeing the world is a great thing, but it can get complicated.
If this describes you, you will want flexibility and as such, buying a house is probably not the right option for you. Especially in today’s market when you are unsure of when it will sell.
Cost Of Living Is Going Up Quicker
You will find that in the current market both wages and cost of living are going up. Until you go looking for a house or looking to rent, you probably haven’t realized that the cost of living has increased at a far higher rate than wages.
Looking at houses for sale and rentals in your area, you will see that both are expensive. However, when you are looking at homes for sale, you will notice that the increase in prices is much more noticeable. The higher amount of rent will make it harder to save enough money to buy a house.
Higher Interest Rates
Right now, mortgage interest rates have gone up. That means that you will end up paying a good bit more than the value of the house. This is not something any homeowner should want. Financial experts are expecting interest rates to continue rising this year. There is no current prediction of when they will start going down again.
Unless you can find an excellent mortgage rate, you may want to consider renting.
Most People Aren’t Ready
When looking to buy a house, you need to have enough of a down payment to make your monthly payments something that you can afford. Unfortunately, for the most part, the current generation does not have enough saved up to buy a house.
Besides the initial down payment, you need to have a fund ready in case anything goes wrong with your new house. When you rent, maintenance is covered in your rent unless you do something to your rental property that is obviously your fault.
Too Much Debt
More and more people have too much debt in today’s world. Whether it is irresponsible spending, emergencies, or student loans, the increased amount of debt makes it hard to buy a home. Not only do you have to pay off your debt, but your liabilities may prevent you from qualifying for a loan.
Overall, right now renting looks like the best option for most people. In the end, though it is a decision that you will have to make. Everyone’s circumstances are different, and the local market can also make a difference when trying to make a decision. A good rule of thumb is to ensure you are financially ready to buy a house and then look for the perfect home, not the perfect market.