In the second part of this series, we tackled the down payment. We discussed how many potential home buyers let the obstacle of an appropriate down payment become an insurmountable obstacle to purchasing. However, that is not the only reason some continue renting instead of buying, though that is their ultimate goal. One thing experts hear, time and time again, is fear that life will change. Well, of course it will. What’s your point?
To be clear, we don’t mean that there are feelings of once you by a home, your life will change. Certainly there are those that fear that major step, especially after being a renter for an extended amount of time. Some only know renting. Their parents were renters, and they’ve only rented, as adults. So, yes, there’s trepidation in the level of commitment…adulting that takes place once you go from rent to mortgage. But, the “life changing” that we’re speaking of, is the fear that something in life will change to make you regret buying a home. For example, a loss of job, an unexpected pregnancy, change in the market and thusly your property value.
Let’s combat those 3 instances, one-by-one, that we may evaluate why renting rather than purchasing is not always a good reason to forego buying a home.
- Unemployment. There are few instances where losing your job would not be cause for concern. Rent vs mortgage would not change the fact there would be tough times ahead, unless your savings planned for such instances. To combat this fear, saving should be a way of life. There are also insurances you can purchase, as a homeowner, that help in times of job loss. That pesky duck squawks about it quite often on many channels.
- Unexpected Pregnancy. There’s no way around it, babies aren’t cheap. It’s true a surprise baby can catch you off guard, financially. However, mortgage payments vs rent payments are often comparable amounts. The “what ifs” of life are always going to be a reason not to many things. Being ruled by fear will make your dream of homeownership falsely out of your reach. To combat this, again, develop your savings plan and stick to it. Make yourself a budget with built-in home expenses, unexpected costs, life changes and anything you can think. It may not be easy, but it can be done.
- Housing Market Shift. The market changes. It does, so just expect it. Whether you’re buying a starter home or your forever home, it is a genuine concern. You can’t plan for it. A competent realtor like the ones at Carod Properties, can tell you all of the things that affect property values and it would be overwhelming. But, it would also show you that, like “life changing,” you can’t guard against it, only plan for it and be prepared. If you run into a situation where you need to sell, it may not be feasible at the exact time you want to sell. But, just like the market may change after you buy, it will change again and allow you to sell, if need be.
Saying that you’ve been renting because of the fear of “life changing” is illogical. The error in that faulty thinking is that it’s easier to get out of lease than it is to get out of a mortgage, when life changes. That is a naive premise. It may be easier, but there are still consequences…legal and financial. Consequences that don’t just go away because you find another lessor willing to take a chance on you. By no means are we suggesting that you take the step of buying a home before you’re ready. What we sincerely believe at Carod Properties, is that if you are financially secure (which means: credit worthy, savings, contingency, and a plan) then YOU ARE READY TO BUY. And, we’re waiting on your call. 1-877-62-CAROD
By: Alicia M. Caldwell, AMC Literary Services