This seems to be a question that many residents have asked. Should I buy? Should I rent? There's nothing that can make you sicker to your stomach than giving away your hard earned money to a land lord each month. Buying always seems to be a good idea in that you basically own your own home and you aren't just throwing money away. Buying a home is one of the best investments there is. But why do people rent if buying is such a great option. Well, there are several reasons that people rent homes instead of buy. Some people aren't at that point in their life where they can afford to buy.

Some of the reasons you should rent instead of buy are:

Bad Credit Report- How is your credit report? If your credit is somewhat in the dumps then it will be extremely hard for you to get a good interest rate or loan. Today a bad credit score is usually below 620. Buying a home with a bad score could end you up at a predatory lenders door, which isn't good.

So, how can I buy a home with a bad credit report? Well, it's not exactly the best advice to buy a home when your credit is bad. You need to get together a plan to better your credit. Have someone sit down with you and take a look at your credit. Do you have any debt? Are you making payments on time? Paying on time is the most important. Others want to know that you are reliable and can make any and all payments on time. So, renting would probably be the best option until you can raise your credit score so you can get a good loan and interest rate.

Job Instability- Are you completely locked in to your employment? Are you going from job to job? If you have a really good paying job and you qualify for a good loan and you buy a home and then lose your job, this could put you in a bind. You need to make sure that you are stable where you are and that you plan on staying at your place of employment. Also, they look at your job history, especially the last six months. I think you have to at least have worked at a place of employment for six months to even be considered. Also, they will look right past you if you are unemployed. Of course, it's somewhat obvious that you would probably not be able to pay a note if you are not employed.

Relocation- Does your job have you jumping from state to state? Do you plan on relocating in the near future? If you are planning on relocating because of a job or other reasons, it's probably a good idea to sit tight and just rent. There is really no reason to buy a home if you know that you aren't going to be a resident in your town for long.

Are there any advantages to renting?

No Downpayment
Smaller Payments
Lower Financial Burden
No taxes
No home/flood insurance
Low Maintence
Easier To Move

What are the advantages of buying a home?

Stability- There's just something about owning. There's a great sense of pride that comes with purchasing your own home. There is some sort of personal satisfaction. If you have been renting up until buying your first home, you are probably aware of that feeling of that having a place to call your own.

Appreciation- Another great advantage about owning your own home is that it's a great investment. Most likely the home you buy will appreciate in several years which will build equity. It sure beats the heck of handing over your hard earned money to a land lord.

Tax Breaks- By purchasing your own home, you will be able to catch a break from Uncle Sam, a tax break. The interest expense that you pay on up to $1 million in home mortgage debt ($500,000 if you are married and filing a separate return) is tax-deductible.

No More Land Lords- You're FREE! That's right! When you own your own home there's no one else to answer to but you. Of course, you still have to pay your bill on time but you are free to paint the rooms whatever color you like. You can make any changes to YOUR home without having to ask someone else for permission.

What are some disadvantages of buying a home?

Responsible For Maintence
Property Taxes
Possible Flood Insurance
Higher Note
Possible Loss of Equity
Harder To Move Than Renting

Are You Looking For A Fun, Professional Real Estate Agent?
Please Give Me A Call!
Lindsay Pendleton
Baton Rouge & Denham Springs Real Estate Agent
(225) 362-0437
www.ForSaleByLindsay.com
Lindsay@ForSaleByLindsay.com