When your faced with a move, the first thing you need to decide is whether to rent vs. buy. Most advice about this decision focuses on the financial ramifications of buying vs. renting. For instance, currently the median price of rent for a 2 bedroom apartment is $1,554 and the monthly payment (purchase, interest, tax and insurance - PITI) of a $165,000 home loan at 3.5% is $1,271, if you wait until interest rates rise to 5% the rises to $1,416. So based on the numbers it appears that it would be cheaper to buy than rent. However, there are other factors to consider such as:
How long you plan to stay, remember there are significant costs involved in selling your home (about 7.5 - 10%), so the general rule of thumb is that if you plan to stay less than 5 years it probably doesn't make sense to buy a home.
The location of your home, if home prices in your area are appreciating, even gradually it generally makes sense to buy, if home prices are going down, say in an area that has flooded recently, buying is not usually the best idea, although there are some exceptions for the advance buyer.
Tax implications, if you currently itemize your taxes you can write off a portion of your mortgage interest, this is a commonly given benefit for home ownership but it doesn't make sense for all buyers so consult your tax advisor.
Your monthly budget, home owners occur expenses that renters don't besides the increased utility bills, there are maintenance tasks that need to be covered and unexpected repair bills crop up. If you are at the end of your money before the end of the month you may want to reconsider home ownership until you have your budget in hand.
Your attitude towards maintenance, houses are like people they need a fair amount of attention to thrive, there is always some little thing to be taken care of whether it's mowing the grass or cleaning the gutters or something more significant you will probably need to step up and take care of it. If you would rather have a needle stuck in your eye than plunge a toilet, home ownership may not be for you.
Your lifestyle preference, if you love to take off on the spur of the moment, or you want to be free to take a job across the country or across the world next week, home ownership may not be your best bet. A home is a commitment as well as an asset and you need to be around to take care of it.
Now that I've given you some things to consider regarding your suitability to own a home, I will go out on a limb and say that for me personally, home ownership is a cornerstone of my financial and psychological well-being. I like the idea of having a place where I can paint the walls purple if I want or adopt that 175 lb great dane, and not have to worry about rent increases or unexpected inspections of my space. If you feel the same way and wish to move into the ranks of homeownership please contact me. There is a home out there for you regardless of your circumstances and I would love to help you find it.
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