Wednesday, 5 October 2016

Rent or Buy? Which Option is good for you?

Real estate market is full of investment options. People assume to get good returns from property investment. Now if you have decided to put your money in real estate to be a home owner and simultaneously you are thinking about rent a home instead of buying. This will also entirely depend on your financial situation and long-term planning to narrow down the best option. There are few factors which need to consider if you are confused about buying or renting a house. Erik Laine founder of Realty Connect has extensive experience in realty business has shared some tips which you can’t afford to miss when deciding to buy or rent a property.

The first point which needs to consider is your house budget and expenses. Before starting searching for a new house it is advisable to check your expenses and your house budget. You need to know how much you can manage to pay for to pay for your new place without burden on the budget. The thumb rule says do not go for rent or mortgage payments if you are unable to pay them on time.

Realty Connect Erik Laine

The second factor is to know the requirements while renting or buying a house. Every landlord will check your credit history and credit score for the mortgage or the rent. They will check whether you are eligible to pay bills on time or not. Your credit card balances will also reflect your financial situation to them. Sometimes you have to show your current bank statements and W-2 forms which will depict your present picture. Some rental agencies may demand professional and personal references for a background check. They may need contact number of the previous landlord to check your history as a tenant.

Next factor which comes in your mind that when to consider renting is a feasible option. If you think like your present job is not secure and you are not sure about your job situation then it is best to save some money for the future living. Renting is the best option when you have restricted funds for your living expenses. An insecure job can’t give you the confidence to pay the mortgage for buying a new home. Moreover, if you have an assignment for short time frame in the city then renting is a good option.

Now you can consider purchasing a house is a good option when you have the ability to bear the additional cost of owning a house. Down payment and closing cost should be paid in advance before you buy a house. If you have unclear debt then it is advisable to clear the debt first and then make the down payment for your house. You should be in a sound financial situation before working out on renting or buying options in detail.

Above Factors Shared By Realty Connect Erik Laine. If You want to know more Contact.