Should you take the plunge to homeownership or stick with your landlord another year? This is never a simple decision, and this current market certainly makes things more challenging for many first-time buyers. But there are more than market conditions to consider when deciding if you should buy or continue to rent.
Answer these five fun but thought-provoking questions to help you get a better idea of where you stand.
a) Never, I’d rather relax and have fun.
b) Occasionally, I don’t mind doing some simple projects here and there.
c) All the time, I love the challenge of a good DIY project.
a) Not very much. I enjoy being flexible and moving around.
b) It’s important, but I don’t want to feel tied down.
c) It’s crucial to me. I want to have a permanent home that I can call my own.
a) No, I prefer the simplicity of renting and having a landlord take care of any issues.
b) Yes, I am ready for the challenge of taking care of a property.
c) I am not sure what kind of responsibilities come with owning a home.
a) Not important at all. I’d rather use my money for other investments.
b) It’s important but not my top priority.
c) Very important, I want to build wealth and have a valuable asset.
a) Not important. I don’t mind living in a space that isn’t fully mine.
b) Somewhat important, but I don’t mind having some limitations.
c) Very important, I want to be able to decorate, renovate and make my living space my own.
Mostly A's: Renting is probably the best option for you for now, as you enjoy the flexibility and simplicity of not being tied down to a property and not having to take care of any home improvement projects.
But don't completely put off buying property! Investing in real estate can be an excellent business venture for those who want an unconventional stream of income to fund their flexible lifestyle.
Mostly B's: It's a close call, but buying a home might still be a viable option for you. You value stability and building equity but are also comfortable with the responsibilities of homeownership.
Discuss your options with a mortgage pro to get a clear picture of what you're money and credit can buy. Even if you're not ready now, having a plan in place puts you in a strong position to make it happen when you are ready.
Mostly C's: You are definitely ready to take the plunge into homeownership! You enjoy DIY projects, value stability, and building equity, are comfortable with the responsibilities of owning a home, and want to have control over your living space. It sounds like you're ready for this exciting new chapter in your life! The next move is to talk to your mortgage professional to see how much you qualify for.