There are a lot of discussions about this subject. Some of the people say it’s wiser and better to buy a home and make investment, while others say it’s would be a lot smarter to rent a home as owning a home is so expensive.
We have talked about investments so much in other articles. Owning a home is one of the best investments you can make. However there are some reasons you should not buy a home but rent too. Here are they.
If your credit report is not good, then you are not going to receive a good interest rate for your loan. Your credit score will be a big game changer when it comes to buy a home. So if you really want to buy a home, you should be fixing your credit score before applying a loan.
There are two ratios to consider when it comes to debt ratios. These are front-end and back-end ratios. When these adds to each other there might occur a ratio which is as high as 50 percent. This is a high ratio and high ratio equals to not getting a loan.
Your job security is one of the most important things when it comes to purchasing a home. You may be earning $10K per month and paying $3K to your mortgage which is a great situation. However if you lose your job, that means you are losing your home too. Job jeopardy and relocation are two reasons why you might lose your home too. So if you are deciding to purchase a home, think about your job stability.
Renting costs are so much less
There are a lot of expenses coming if you are buying a home. If a rent cost you $2,5K, owning a home with all of it’s expenses might cost you $6K per month. Especially if you are in a 30 percent tax bracket, you might not have the chance to get your money back. You will be spending a lot more if you own the house rather than renting it.