Monday, January 3, 2011

Buying Vs Renting

Real estate prices are at an all time low and mortgage rates are even lower. For these reasons many folks are considering leaving their rental places to pursue home ownership. Unfortunately, many of these renters are uncertain about the future. These people do not know if they should purchase a house since they feel that it may end up losing some of its value shortly after.

If your buying a home for yourself and you plan on living there for many years, this should not be a factor. You can purchase the home now and even if it goes down in value for another year, it will most certainly go up again. You'll just need to make certain that you really do want to stay in the same place. If your going to be living in Pennsylvania in another year or two, you want to stay away from looking at Minnesota real estate.

Choose an area that has enough employment for you to work multiple jobs. You wouldn't want to move into a home and find yourself suddenly out of employment with no other options. Disregard this warning if you have a job that you can do from the comfort of your own home.

After you have located a place with a multitude of employment options, you will just need to ensure that the houses in the neighborhood are within your price range. Never choose a home that you cannot currently pay the mortgage on. There is no shame in assuming you will earn a higher income in years to come, but you wouldn't want to risk your financial future on this assumption.

Most folks assume that if you make enough that the mortgage only accounts for 30% of your income, then you have the green light to buy the home. This can be dangerous because they don't take into account any other variables. For example, if you spend 90% of your income on other obligations and monthly expenses, you wouldn't have 30% of your income left to pay on your mortgage.

If your still not sure whether or not to buy or rent, you may want to consult the professionals. Speak with a realtor and a mortgage broker. A good real estate company to speak with is You'll find that this company has a wealth of experience to bring to your aid. Just make sure you have your budget drawn up before you contact them. They'll be able to give you advice on an individual basis this way.

Thanks so much for reading this post on buying real estate. If you enjoyed this article, please add it to your book marks.

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