If you’re moving to a new city and you can’t decide whether you should rent or buy, there are a few things to consider. Long before you hire a moving company and work with professional movers, this is a major decision that you’ll have to make. Luckily, we are here to help you out along the way. Here are five questions you should ask yourself as you decide between renting and buying.
What’s the market like?
The real estate market is a rapidly changing one. So if you were intent on buying a home in 2019, your outlook may be different in 2021. Quite frankly, it is a seller’s market for sure right now. This means that the buyer is at a disadvantage because so many people are paying over asking price for homes. This makes it nearly impossible for you to score a great deal on the housing market. Good news is, this changes in time. So it may be smart for you to rent a place for a few months or even a year while you survey the real estate market. Get yourself a real estate agent if that helps.
How committed are you to the area?
Buying a home is a major commitment. If you’re not sure you want to stay in the new city you’re moving too, it may be wise to hold off on such a life changing purchase. While it may be easy to say you can always rent out or sell your home, these things aren’t always promised. If you need some wiggle room in your life and you’re not quite sure where you want to settle down, explore renting a place as an option.
Is the decision bigger than you?
If you’re part of a family and you’re tired of spending lots of money on rent for huge spaces, maybe it’s time to invest in a home once and for all. For those who are single and have flexibility, getting to this point can take a little while. However, if you are the head of the household and you really want to invest in something major and set an example for your children, we fully understand your desire to purchase a home.
Can it be just an investment?
In the age of Air B&B and various other rental properties, buying a home doesn’t have to mean you uproot your life and relocate into a large space. If you find a good deal, it may be worth it to think of it as an investment property. This is a great way to generate income and pay your mortgage monthly. Try to also look at market trends. If you have every reason to believe that the home will be worth twice as much in a few years, that would be a wise investment. Some indications could be an up and coming area with major developments like casinos and hotels nearby.
How much time do you have?
Sometimes making this decision comes down to something as simple as timing. If your lease is about to expire at your old apartment and you need to move right away, then you probably won’t have time to roam the market for a new home to buy.