To rent or to Buy?

chloejoanna · Joined: 20 May 2008 Posts: 37 16.05 Dollars($)

I currently rent, but am thinking of getting on poperty ladder in next year or so. Do people think this is a good idea or is it better to keep renting whilst i save some more?

chloejoanna · Joined: 20 May 2008 Posts: 37 16.05 Dollars($)

By the way savings are minimal at moment

larry · Joined: 27 Jun 2007 Posts: 3328 474.49 Dollars($)

Hi chloejoanna,

Welcome to the forum.

Whether you should keep on renting or buy a home depends on your affordability. If you have enough savings to pay the down payments and closing costs and also if you can afford the monthly payments then you can definitely go for buying a home.

Check out the calculator Know which is better - Buying or renting

Feel free to ask if you have any further questions.

Best of luck,
Larry

laphillips · Posted: Wed May 21, 2008 4:16 pm Post subject: To Rent of Buy?

Welcome chloejoanna,

As Larry said affordability if the key. Check the calculator link & also the calculator http://www.mortgagefit.com/calculators/howmuch-afford.html. When you feel ready to start thinking seriously get a pre-approval from a mortgage broker or lender before making an offer on a property. There are a variety of benefits to getting pre-approved.

Remember also homeowners qualify for significant tax benefits...mortgage interest, property taxes, even mortgage insurance are deductible (seek the advice of a tax accountant).

Also, interest rates are now lower than ever AND many financing opportunities including down payment & closing cost assistance available!

Very Happy

gmakerley · Posted: Fri May 23, 2008 8:19 am Post subject:

i am in agreement that this is probably a very good time to enter the home-buying market.

your lack of funds might affect you; it might not. if you live in a state that has a bond program allowing reduced-rate mortgages, then downpayment assistance is probably also available.

you'll be able to determine the existence of a bond program easily enough. simply use a search engine online and punch in your state name and "bond program" and you'll likely find a link or not. if not, then there isn't one. if a link shows up, go to that site and you'll get a world of information.

and when all else fails, you have all of us to lean on to ask questions as well.

lisascherzer · Joined: 04 Jan 2008 Posts: 755 1.07 Dollars($)

I would save until you have at least 3% to put down and two months reserves. I would definately take advantage of the buyers market and get a good price on real estate. There shouldn't be any reason to wait beyond that.

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