We will probably all face this question at some point in our lives. The bottom line is the answer will depend on many factors, your individual situation, your location, and how long you plan to be there. Many other factors may play a part in your decision as well. Here are a few things to consider:
- Define your goals – Do you even want to own a home? While there are many advantages to being your own landlord, there are disadvantages as well. For instance, if there is a problem with plumbing, it’s up to you to call the plumber, get it fixed, and pay the bill. However, owning your own home means building your own financial portfolio rather than someone else’s. There are many things to consider, but first-things-first…do you WANT to be a home owner?
- Are you able to buy? – Just because you want to be a home owner doesn’t necessarily mean you are able to be one. A few things to check into. First, do you have a down payment. Nearly all lenders will require some down payment. However, there are programs available to help. Check out Wyoming CDA and HUD First-time Home Buyer sites.
- Your Location – In some places it is less expensive to rent than to own, and vice versa in other places. In some areas finding a home to purchase that will keep your monthly payments in a range you can afford may be a challenge. In other situations, rent may be much more expensive that your mortgage, property taxes, and insurance would be on your own home.
- Are you staying long? – Real Estate generally only pays out for the owner over the course of years. Though there are exceptions, generally speaking real estate ownership is not an overnight pathway to financial well-being. Most times people interested in owning real estate will see the benefits come over time. If you are not planning to stay in the area for a long time, then you have to consider the market conditions prior to purchasing.
These are just a few things to consider. For a few more resources to help you make your decision, check out these websites:
https://www.realtor.com/mortgage/tools/rent-or-buy-calculator/
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