For some people buying a home makes the most sense, but for others renting may be the best option. Here are some things to consider:
Are you staying in the area? If so, for how long? Purchasing a home may make more sense if you are planning to stay in the area for more than five years, or longer. However, renting a 2-bedroom apartment in Charlotte, NC is typically a better option if you can’t see yourself sticking around for more than a few years. Maybe you have a career that will take you to another city, or you are planning to attend grad school – regardless, it might not make sense to sell or even rent a home within a few years of purchase if you’re planning to move.
Is now a good time for a property investment? If you have a steady income, and feel financially comfortable, you may be able to invest in your own home.
How much $$ do you have saved for a down payment? How much you need really depends on your price point and ideal monthly mortgage rate. Keep in mind, financing a home goes beyond securing funding for a down payment and loan. Many transactions also include fees to cover closing costs, the home inspection, an appraisal, moving expenses, and more.
What about taxes and other expenses? Who doesn’t?! As a homeowner, property taxes and mortgage interest are deductible, but are usually only beneficial for individuals in higher tax brackets. There are certainly costs associated with homeownership, including upkeep, which means some of these deductions will offset.