Becoming a homeowner is much like becoming your own boss. You don’t have to ask for permission to paint your walls a particular color and you don’t need to notify the rental office when you plan to have overnight guests. Of course, homeownership doesn’t come free, but you’re likely to get more leniency from your mortgage company for being a few days late than a landlord. At the same time, you don’t want to buy a home that comes with a 30 year mortgage for the sole purpose of being in complete control of your current housing.
With spacious duplexes for rent and cheap efficiencies available for short and long-term leases, you can get exactly what you need in a rental while waiting for the perfect opportunity to buy. It could be six months until you’ve ready to purchase a home or six more years before you’re ready to begin working on improving your credit profile. Even if have the money to buy, waiting could be the better choice in your situation.
Following Real Estate Value Trends
Often called housing bubbles, this is when property values are higher than they are expected to be in the near future. A home that is purchased for $200,000 might only be worth $150,000 in a year if and when the market slumps. Buying a home during a real estate bubble is bad for buyers for multiple reasons. First, you will be buying a home with fewer bedrooms, bathrooms, features, and amenities at a higher value than it is actually worth. Second, your mortgage is guaranteed to stay underwater for years after it is appraised for less than what you purchased it for. Lastly, if you buy a house during a housing bubble you will not get a good return if you attempt to sell it.
Waiting Longer to Buy Results in More Money Saved
There are mortgage programs that allow buyers to put very little money down on their homes. On one hand being able to buy a house without a down payment might be something that is beneficial to a limited number of people. If you don’t live in an area that traditionally has many rentals, buying a home makes sense if you want to live in an exclusive spot. Another fact that should be considered is that buying a home with little money in the bank probably means that you have issues with budgeting. Renting could help you to work out your financial problems and teach you how to spend responsibly so that saving isn’t troublesome for you.
Your Household Could Change Soon
No matter what stage you are in your life now, things can always change sooner than expected. If you’re single, the right guy or girl could be just about to enter your life. Married couples with children could become grandparents several times over in just the span of a year, while lifelong bachelors might decide to become the owner of a dozen pets. Giving yourself a bit more time to think about where you’re going in life can be helpful before you make a major decision and purchase a home.
You can buy a house and then turn right around and sell it, but most new homeowners purchase property for the purpose of making it their permanent, long-term residence. If you want to buy real estate but you can’t settle on the type of home you desire to live in, the neighborhood, or the price don’t make a decision that can’t be undone easily. Just wait a little longer and you will know when it is the right time to own.