The answer as to whether you should rent or buy a house is not cast in stone; maybe renting is more suitable to your current situation, but not after a few years. For example, you should think about purchasing a house when you are in these three situations:
You Are Interested In a Certain School District
It has been said that education is one of the greatest gifts parents can give their children. This is why many parents take their time to identify great school districts for their kids. If you have reached that point in your life, then buying a home will also be a smart idea for you.
Once you identify an excellent school district, it's likely that you will be spending many years in the area (as long as your kid is still in school). There is no point of paying for all that rent if you won't be moving. After all, the ability to live where you want at any time is one of the premier advantages of renting, but you won't be interested in that now.
You Are Done Globe Trotting
Some people have the urge to see the world before settling in once place. Depending on your budget and desires, you may find yourself moving from state to state or country to country over the course of a few years. However, many people also find it impractical and costly to travel the world forever. If you have reached that point in your life where you feel like settling down, then buying a house rather than renting one may be advisable.
You Can Afford It
One of the top reasons many people don't own homes is because they can't afford them. It follows, therefore, that you should start thinking of buying a home when you can afford it. Here are some factors that will tell you when you can afford a home:
- You have a stable source of income that you will use for mortgage payments
- You have minimum debt obligations, such as student loans and auto loan payments
- You can raise the down payment
- You have a favorable debt-to-income ratio
When you are ready to buy a house, treat it as one of the most important investments of your life, because it is. This means you need all the help you can get, chief of which is the input of a real estate professional.