Whether your lease is up, you got a new job, or you are tired of your current residence, there are life situations that cause people to relocate. As you determine where you want to live, it can be difficult to determine whether you want to rent or purchase your next place of residence. There are positive and negative aspects to each of these options. In this article, we will share a few situations that help determine where you should move.
1. You Are In a Transitional Season
Whether you are attending college or are stationed at a job site for a period of time, there are certain times when your residence is only temporary. If you only plan on living somewhere for a short period of time, it is wise to rent your property so that you are not responsible for certain expenditures before or after your stay.
2. You Are Planting Roots
If you have determined that you want to stay in the city that you currently reside in for a period of time, it may be time to consider purchasing a property. When you plant roots in a part of town that you love, you may consider investing in a residence. A home is an investment that can benefit you in the future if you plan wisely.
3. Your Salary Constantly Fluctuates
If you are in a commission-based role that is not yet established, consider renting an apartment until you gain a better understanding of your pay structure. In roles that rely heavily on commission, it often takes individuals a few months to understand how to budget because of the changes in their paychecks each month.
4. You Have a Large Sum of Cash On Hand
Many well-established individuals fear purchasing a home. While exciting, it is one of the largest financial decisions that you will make in your lifetime. If you have a large amount of cash that has been accruing over a period of time, a home is a great investment for your funds. In order to purchase a home, you must make sure that you have enough funding to cover the initial expenses and payments. To fully understand the extent of these expenses, understand that the closing costs are typically 5% to 10% of the selling cost, secure house insurance, and establish a doable down payment amount for homes in your price range.
5. You Are Looking for Amenities
One major perk of living in an apartment is the access that is given to amenities. Pools, fitness centers, dog parks, and coffee stations are often facilitated by apartment complexes. If you are looking for a place that allows you to have full access to the things that you enjoy, an apartment complex may be the perfect place for you.
There are pros and cons to being both a renter and a homeowner, and making the decision to rent or buy can be difficult. In some instances, individuals are ready to invest their cash and plant roots in the city of their choice. In other scenarios, individuals are in transition and are hoping to live somewhere that has easy access to luxury activities. Take these tips into consideration when making your decision.