Unsurprisingly, many home buyers are left wondering: Is buying a house still worth it in 2022?
The short answer is yes. If you're financially ready, buying a house is still worth it
— even in the current market.
Experts largely agree that buying and owning a home remains a smarter financial move than renting for many.
Ultimately, the decision comes down to where you live, your financial fitness, how long
you plan to live in the home and what your cash flow looks like.
Here are some questions you can ask yourself to help you choose between buying and renting.
Two cities in Florida -Tampa & Orlando - saw some of January's fastest annual
rent growth, which made buying more attractive even though home prices and mortgage rates were on the rise.
Benefits
One of the major benefits of being a homeowner is building equity with each mortgage
payment, instead of putting money into your landlord’s pocket.
But that doesn’t mean buying is always the best choice—as a renter, you enjoy more
flexibility and avoid many of the costs that come with homeownership
For those that want the flexibility to move quickly, have no desire to maintain a property,
or need to save up money before making a purchase, renting is worthy of strong
consideration.”
But wait, there’s more (to consider)!
We understand the magnitude of your rent versus buy quandary, and we’re here to assist
Are you financially fit?
The decision between renting or buying for most people is less about home
prices or rents and more about whether you're ready to be a homeowner.
What does your savings look like after a down payment is taken out? What is
your credit score? Do you qualify for a mortgage? Can you make the monthly
payments?
People should have the following when looking to buy:
Six (6) months of expenses saved up in an emergency fund
$10,000 in cash to cover closing costs and moving expenses
Credit score of 720 or higher when looking to buy
The overall cost of owning the home -- including the mortgage and utilities,
taxes, maintenance of appliances and the yard and the expense of everyday
wear and tear -- should not exceed 40% of a person's take-home pay.
How long will you live there?
If you only plan to live somewhere for two or three years, experts generally
recommend renting. It is always a good time to buy if you're planning on
staying there for a while.
What are your monthly payments?
As a homeowner you will need to do the math on what your cash flow will look
like with monthly mortgage payments, the money needed up front to complete
the transaction and the amount you'll need to maintain it.
There is no sense in rushing into homeownership before you can comfortably
cover those costs,
Making sure you find a monthly payment that you can afford is important, but don't forget to add to that other expenses you will face as a homeowner!
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