In today’s financial climate, many people are renting rather than buying. Most of the time that isn’t out of choice, as sometimes renters simply can’t afford to own their home. However, for those that are looking to buy a home, it can sometimes be confusing to tell when the right time to purchase a home is and cease renting. Should you keep looking for houses for rent in Austin, TX, or should you look for homes to buy? There are many different factors that determine whether you should stop renting or not and whether it’s time to buy a home. So what signals should you be looking for to tell you you’re ready to buy a home? Let’s take a look.
Financials
The first factor that determines how long you should rent a home is your current financial situation. Buying a home costs a lot of money, even with a mortgage. Most mortgages typically require a down payment of around 20% of the loan, meaning you’ll still have to save up a large chunk of money. On top of the mortgage down payment, there is also a slew of other fees you’ll have to deal with. For this reason, you probably should rent until you have saved up a large sum of money and are financially stable. Owning a home is a big financial commitment, so if you’re not ready for it, then you should probably keep renting.
Family
Another major factor in how long you should rent is your family situation. If you live alone or just with a partner, renting for a long period of time may not be that bad of an idea. You won’t need too much space, and moving around from different leases shouldn’t be that big of a hassle if required. However, when children enter the picture it may be time to start seriously considering buying a home. With children, you’ll need more space and a bigger location, which can sometimes be hard to find in a rental property. Additionally, you’ll want to have stability when you have kids, as you don’t want to force your children to leave their school district and friends because you need to find a new rental property. Owning a home brings stability to your life, something that is highly valuable when raising children.
Occupation
If you have a well-paying job and are looking to establish roots in a location, then it may be time to look into owning a home. Renting gives you great flexibility, allowing you to move around and chase the best offers. While you’re renting you can relocate easily when your lease is up. However, once you have a good job you’ll likely want to settle down and live in one location. When this happens, the flexibility of renting doesn’t have as much value, meaning a major advantage of renting simply doesn’t matter anymore. When this happens, you’ll likely have the financial stability and job security to start looking into owning your own home.
Current Lease
A somewhat obvious factor in how long you should rent is your current lease agreement. You may be financially ready to buy your own home, but if your current lease agreement doesn’t allow it, then you’ll have to wait sometime. Most lease agreements have an early termination clause, outlining what happens when you break your lease early. Some leases will force you to pay a lot of fees for breaking your lease early, causing you to waste a lot of money. Other leases may bar you from terminating your lease altogether, forcing you to keep paying rent throughout the duration. For this reason, it’s probably best to keep renting and see your lease through.
