Monday, June 3, 2013

Rent or Buy? - Zillow Real Estate Advice

You are asking a very good question.??

Have you and your spouse/partner put together a financial plan? (e.g. Do you have a savings strategy so you are saving monthly?? Savings plan for retirement? etc) ? A life plan for the next decade and longer?? (e.g. education, travel, kids or not, ? a dog or a horse or a hamster,? parents aging and needing help, employment evolving).?

The goal to have a house at some point is realistic, but where does it fit into the master plan?

Sometimes renting is better than buying.? Renting allows you to be more flexible; it allows you to build up a good solid financial cushion;? it allows you to explore life without the obligations of maintenance, mortgage payments etc (perhaps the Peace Corp beckons), perhaps classes at the university will lead to a job outside town and the house will be a burden.

The second part of the equation "buy a small inexpensive starter home".?? If you are thinking that would be okay for a few years, talk to a the hundreds of thousands of people who made that choice a few years ago and are now stuck owing more than the home is worth and with several kids.???? Don't buy a home unless you can see yourself living in it for at least 10 years.

There is no emergency to buy homes (many agents give a sense of urgency in their "buy now" messages).? In most parts of the country houses are not a super bargain.? As interest rates go up, house prices tend to go down.?

Here's a link to Zillow's buyer's roadmap.??

Source: http://www.zillow.com/advice-thread/Rent-or-Buy/494922/

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