Are you trying to decide whether you should rent or buy a house in Rhode Island? In our latest post, we offer some questions to ask yourself to help you make the decision!
Like many people, you might find yourself on the fence, trying to figure out if you should rent or buy a home in Rhode Island or the surrounding area. There is no right or wrong answer, what is right for one person. may not be right for another! Consider these questions below before you make the decision on whether to rent or buy a house.
How Long Do You Plan On Being There?
Nobody can predict the future, and sometimes some of our most well thought out plans can change. However, you should have a pretty good idea of how long you want to live in your next home. You should ask yourself if you are ready to lay down some roots, or if your next place should simply be a stepping stone to something else in your future.
As far as the numbers are concerned, if you want to see a profit when reselling the home, you will likely need to say in it for 2-5 years. This will give you time to recoup the costs associated with purchasing a home such as agent commissions and closing costs.
How Stable Is Your Job?
Do you see yourself being in the same position or industry for a while? Generally, you will want to have some sort of security before locking yourself into a mortgage payment each month for the foreseeable future. You might be in a place where you are jumping around a bit career-wise, and that’s ok. If this sounds familiar, you might want to hold off purchasing a home until you are a bit more grounded. If you are thinking about buying a home, it is very important that you have stability in both your work and personal life.
Do You Have Money In The Bank?
Whether you choose to rent or buy, you will want to have some savings put away. When you buy a house the traditional way, not only do you need to consider the down payment, but there are closing costs, inspections, and commissions to consider. There will also likely be repairs to take care of when you move in. Some of these costs can be avoided if you choose to buy directly from a private seller or from a company such as I Buy Your House.
When you rent, you will typically need to come up with the first and last months rent in addition to a security deposit. Depending on the property, this could easily add up to a few thousand dollars.
Do The Math
Before you decide to rent or buy a house in Rhode Island, do your math! There are many trusted websites that offer online calculators to help you compare your options. When you purchase a home, you will have new expenses to consider. Property taxes, maintenance and homeowners insurance will all need to come out of your pocket. However, homeowners receive tax breaks renters do not qualify for. Whichever method you choose, you should always make a well thought out and financially responsible decision for your situation. While building equity will make you more money over time, if you cannot afford the increase in expenses upfront, renting may be the better choice for you. I Buy Your House can help you run the numbers for your situation, so you can determine whether you should buy or rent a house in Rhode Island!