Should I rent or buy a home in Florida
The pace of life can be so quick that we have a tendency to blow by important decisions. One such decision is the decision to rent or buy a home.
One of the biggest decisions people come to is the issue of renting versus buying. Really, it is an extremely tough choice to choose between the two. However, I once had an economics teacher who put it extremely well and puts the whole thing in perspective. His motto was, “Rent when you have to, buy when you can.” This statement is only too true, and we will discuss why?
Renting can be a big plus for certain people. If you are on the move, get relocated within your job frequently and need to stay mobile it might be a good reason to continue renting for the time being.
Also if you just moved out of the house and very low income and no credit it may pay for you to rent for a while. Renting when first out of the house is also good to gain the experience of budgeting for yourself and becoming disciplined with the use of your money.
None of us or I should say noone makes enough money and it is much easier to spend than to earn. Some people that are moved around a lot in their jobs still might want a home base. If you have been good with your financing and not overdrawn frequently, have a decent credit score a steady job and a few months rent put away you might want to educate yourself in home ownership options..
The benefits of home ownership and buying your first home or another home even if you have been renting for a while far outweigh the argument against purchasing a home.
Buying a house takes tons of paperwork and involves a commitment to that house. But in the long run owning a house in Florida or elsewhere is extremely important.
It is one of the biggest investments that you will make in your lifetime. It will also provide you with stability and equity that will build over time.
Lets discuss equity.
The biggest advantage to home ownership is equity.
Home equity is where most people have the largest part of their savings over their lifetime. Paying off your home is like a forced saving account. Every month that you pay down your loan the portion of principal that you are paying for becomes your equity in the home. Over 2, 5, 10, 20 years that equity builds and that is where most wealth is built.
In addition to equity your home has tax advantages in the form of write-offs that can save you thousands in taxes over the year. Additionally, have you ever known in a 5 or 10 year period real estate values to decrease. That’s right, as real estate values increase the equity in your home increases.
For most deciding when to purchase is typically just a lack of information about their options. Home ownership is seen as a right of every citizen and there are tons of programs to help consumers get into a home. From no money down to down payment assistance. The options are endless. Contact your CambridgeHomeLoan advisor today.
At CambridgeHomeLoan.com we are well versed in the loan programs that are available as well as ones that are not so common both for those with bad credit that may need down payment assistance as well as for those seeking Jumbo and super jumbo home loans that may be seeking a statement only or asset only home loan. We can also discuss your credit and finances and how to best position yourself to get the best mortgage rates and terms for a home loan.
In some cases consumers shy away from purchasing a home because their credit score means a higher rate. That higher rate might still make your payments lower than renting a home. In the end it is about peace of mind, the peace of mind that comes from the right financial moves that gives you the cushion that you need for difficult times. Purchasing a home instead of renting in Tampa Florida or elsewhere can help. Home ownership is just one step in that journey