The spring housing market is kicking off.Residential moves always increase in the spring, and many are wondering if they should rent or buy a home.
Buying a home has always been part of the American dream, but not anymore. You need to ask yourself some serious questions before buying a house.
The real key question before you do anything when it comes to a home is how financially secure you are, the more buying a home makes sense. But, if you’re not financially secure, or think you may have to move to another part of the country or another part of the state, if you lose y our job in order to keep earning an income, well that just answers the question right there for you. You need to rent.
You should not buy a home if you can’t stay in it at least five years. The upfront costs are simply too great. The traditional guideline of putting 20% down is still best.
When you look at the real rate of return, the inflation-adjusted rate of return over a long period of time in the U.S. residential real estate, it’s about 2-3%. It’s about the same rate of return you’d get from bonds.
One of the biggest myths in real estate is that renting is throwing your money away. In many cases renters can automatically put savings they aren’t spending on a home, into a well-diversified portfolio.