Every year, people in the city or others in different parts of the country make the decision to rent for another year or take a leap of faith into homeownership. They look at the earnings and savings they have and then decide what makes the most financial sense.
These equations always take into consideration monthly housing cost, taxes, and other incremental expenses. Using these measurements, studies that have been done show that it’s still more affordable to own than to rent in most parts of the country.
While it is true that renting can be cheaper than the overall expenses of owning your home from month to month, appreciation of homes has been responsible for countless millions and billions of dollars in wealth accumulated by homeowners.
If you are planning to be a homeowner, first ensure you have the following boxes checked in these money areas
If you’re looking to purchase a home, make sure the payment plan you are offered allows you to continue saving for retirement. As your income grows over time and your payment plan takes up a reduced percentage of your expenses, you will have room to increase your savings.
Knowing where your money is going before buying a home will help you target areas for adjustment. In addition, understanding your monthly cash flow ins and outs allows you to know how big a home you can truly afford.
Take stock of any outstanding debt you may be having from credit cards and car loans, etc. This will affect your debt-to-income ratio, this being the total of all your monthly debt and your housing expenses versus the amount you earn.
Buying a home is one of the most exciting times in one’s life. With a little advance planning, preparation, and taking stock of your future plans, it is an event you can enjoy instead of stress over.
If you’re trying to decide if now the right time to buy a home is, contact our Regional sales experts today to discuss your options.