9 Things To Consider Before Moving Into Your New Home
A lot of times, renters who’ve been used to renting apartments, condos, or homes their whole life, are more than weary of breaking the mold and settling on a purchase. However, there are many other times when tax credits or even just a little voice
inside your head, hint that maybe just maybe it’s finally time to bite the bullet and stick the “sold” sign in the front lawn of a great home. So how do you know when it’s right to take that next step? Many people don’t and consequently spend years before they finally take the plunge. In fact, I have a cousin whose family bounced around from rental to rental five times before finally settling on a home for them to live—five times! Of course, there’s no number limit for when you’re finally ready to settle down, but after five exhausting moves, you start to wonder if you’re ready for the big one.
Pros of Renting
Does your job find you relocating frequently? Is there a chance you’ll need to move in the next few years? Before jumping into a purchase, think about what your future holds. Renting allows you to pick up and move much more easily and quickly than a home does. As a tenant it won’t be your responsibility to find a new person to take over living in your home, rather that task will fall to your property manager taking a lot of the stress off of your shoulders.
Nicer Living Areas
Renting allows you to live in a home that you might not otherwise be able to afford. Depending on what your rent budget allows, you may find yourself living in neighborhoods you’ve never thought possible.
Owning a home is expensive! Not only do you get stuck paying a lot for insurance and mortgage, but you also need to factor in the expenses of taking care of the property. Things like a yard, pool, and leaky faucet do not fix themselves on their own—nor do they fix themselves for free. When you rent, however, you’re only expected to pay your rent and any renter’s insurance, and to cover the contents of the home. Things that go bump in the yard and home, however, fall under the insurance and care of the property management team. This money can then be put toward funds for a home purchase or anything else you may desire.
Pros of Buying
Purchasing a home allows you to prepare for the future and plan out accordingly for your future wealth. Because a home provides you with a sense of security, you’re able to plan your expenses, rather than worry about rent inflation or eviction. Not to mention, you’ll be looking at home sale inflation, which over time will allow you the potential to make a profit on your home should you decide to sell in the future.
While property managers will often let you remodel, paint, and decorate within reason, it’s nothing compared to what the freedom of a home will allow you. Owning a home gives you the opportunity for remodeling and expanding down the line, instead of being stuck in the same sized home (or moving).
Ironically, a bonus of a owning a home is the renting benefits. Should you and your family ever decide to move, you’re given the option to rent your home and make some extra money. Though this is not always a feasible option for everyone, it is a bonus for those who have the money to make a home purchase elsewhere too.
Things To Consider
- Where do you plan to be in ten years? Consider what you’re life looks like down the line and anticipate how that can affect your home purchase or renting. If you’re expecting to move, for example, within the coming years, it may be best to stick with renting for the time being. Likewise, if you’re planning on settling down and staying in the same place, then it may be time for you to invest in the ever elusive home you’ve been avoiding purchasing.
- What does your budget look like? Take a look at your monthly expenses and decide whether or not you can afford to make the move. If you’re living paycheck to paycheck, for example, it may be best to wait until you’re in a more secure place. Consider all of your monthly bills that absolutely must be paid each month and factor in the potential home expenses on top of that, prior to making your decision. Finally, think about whether or not you’re willing to take a hit to your bank account, or if you’re more comfortable continuing to save, and are perhaps better off waiting on a purchase for a few years.
- If you’re wondering what option is best for you, take a look at the New York Time’s informational tool that helps you understand visually what option may be best for you.
Whether renting or buying, care should be taken to consider the best option for you and your family. While a tax credit may seem
like the best decision, it also may not be what’s best for your financial means. If anything, be careful never to rush into a purchase or rent, always think things through fully, and never take a plunge that you’re not 100% comfortable with. Buyer’s remorse in a department store might be easy to get over, but buyer’s remorse on the home market is not feeling you want to endure.