As a Realtor, you might assume right off the bat that I’ll tell you, one and all, that you should buy a home. Now. No matter what.
However, the truth is that it depends on you. While there are many factors that go into whether or not home ownership is for you (debt to income ratio, married vs. single, kids vs. no kids, in school vs. full time employment, etc.), there is one question that helps narrow it down.
How long do you plan to live in this area?
If the answer is 5 years +, it is generally a good idea to buy a home. If you’re looking to move and sell your home after just a few years, I would recommend renting.
It costs money to sell a house. If you buy a home for $300,000 and turn around and sell it two years later, the home may only be worth $310,000, your loan might still be $280,000 and it would cost around $30,000 to sell your home. Meaning that if you’re lucky, you might walk away from the sale of your home with no money. And if you aren’t lucky, you might end up paying cash just to be able to sell your house.
So, while there are many factors that may affect it, generally speaking, don’t plan to buy a home somewhere unless you plan to stay for at least five years.
If you have questions about your specific scenario, feel free to reach out and I can help make things clearer for you!