You just got notice to vacate, should you buy a house or continue to rent?

If you are presently renting and you received notification that your lease is no longer going to be renewed. Do you buy a new house to live in or continue renting? Here are some things to consider as it relates to deciding what you and your family should do big picture.

Buying a house might seem out of reach. A credit score is not good, the debts not good, and the down payments are not there. There’s a whole slew of reasons not to. It would be worth it to talk to a mortgage lender to figure out what it is that you can afford, and you might just be surprised that you can qualify for a mortgage. If you’re grounded in your job, and the area in which you live, you might want to give some consideration to buying a home versus throwing in the towel in defeat and renting for another year. Granted buying a house is not for everyone but those who have a willingness and a desire to propel themselves into real estate could untap a source of income they may not have considered. So, figure out if you qualify. If you can qualify, the payments are manageable, and you have a long-term picture in mind try it. Start looking for homes, make offers, and buy a home. Take the threat of adversity and use that as a positive to give you and your family the boost that you need to start looking for homes. Remember when you buy a home you get to write off all your interest and all your property taxes. It will unequivocally make you wealthy and grow over time.

When you own a home and you’re paying down your mortgage part of your payment goes to principal and interest. Another part of it goes to taxes and insurance but you’re repaying that loan effectively building a savings account each month. Rent on the other hand you get no such benefit. You have a place to live but that’s it no ownership, and no ability to make changes to the property. Buying a home also can allow you to create more income by renting that property out or using it as leverage to buy more real estate in the future. The moral of the story is if you get a notification that your rental is no longer being renewed use that as an opportunity to take the next step and start looking for a home. Worse comes to worst go into a short-term month-to-month rental. Don’t sign a 12-month lease when continue to look for homes. This way you can ensure it’s the right fit for you and your family going forward.

 

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