November 19, 2013
Buying a home is always better than renting, true or false? Why?
Buying a home is always better than renting, true or false? Why?
False, this is because it depends on YOUR situation. If you are moving around a lot and have lots of debt and not enough money or income to make a good down payment and subsequent payments, renting is the better option. If you have none of that and have a stable job, you may want to consider buying.
Well said, Alex. Let’s recap.
Buying a home can work when you have a stable relationship with your significant other. When you have no debt. When you have 20% to put down as you avoid PMI. When you have a good job and expect to live there well over 5 years. Finally, buying a home can be wise when you have a family to raise and you want to do it in one home that provides the safety and security they all need.
What if you can’t meet some of these criteria? I would recommend waiting until you can. Don’t be in any hurry to buy a home. Prepare and wait until you are ready. Hit on the “buying a home” tab on this website to further your education. You can see an illustration on the subject of buying and renting a home from Salmon Khan right here:http://www.youtube.com/watch?v=s8GjDRT2MI0.