If you’ve been renting properties for a while, you may be wondering when you’ll be ready and able to have a home of your own. Especially when looking at island homes, there are a lot of things to consider before making a decision. Here are some questions to ask yourself to figure out if renting or buying is right for you.
Do you move frequently?
Renting a home requires less commitment and is usually a better option for people who move around a lot. Even if you aren’t required to travel for your job, if you are a spontaneous person who doesn’t like things to stay the same for too long, renting may be the best option for you. When you rent you’re not responsible for home maintenance, which allows you to leave for longer periods of time without having to worry. On the flip side, if you’re a homebody who likes to make a space your own, buying would be the better option. When you own your home, you don’t have to ask the landlord’s permission to paint the walls or otherwise personalize the space. It is your own!
Are you financially equipped to buy a home?
This one may seem obvious, but it is the most important. Being financially ready to buy a home usually means having minimal debt and a good-standing credit score, and having enough savings for a downpayment. You should also think about job security - can you rely on an income for at least the next year? If you lose your job or receive a demotion, will you still be able to afford your mortgage? It can be scary to think about things that may not go as planned, but it’s important to consider all the possibilities so you don’t end up in over your head. If you have substantial savings for emergencies, you should feel more secure in your decision to buy.
Are you prepared for added costs?
There are a lot of expenses that become your responsibility once you own a home that you didn’t have to think about while renting. For instance, homeowners have to pay property tax, and renters do not. Also, homeowners cover the cost of home maintenance that a renter's landlord would cover, and they also have to pay for home insurance, which can cost a lot more than renter’s insurance. Owning a home is an investment that can pay you huge returns, but those returns won’t come right away, so preparing for a costly first few years is important.
Which is more important to you: Stability or Flexibility?
When asking the question “what is right for me?”, it’s essential that you think about what you value most in your life. For some people, tying themselves down to one place feels suffocating. For these people, having the flexibility to move with little to no notice may be more important than the stability that comes with owning your own home. Buying a home is a huge investment and some people may not be ready for that level of commitment, which is okay. That’s why we rent! On the other hand, other people may find the constant moving and property search draining. If you’re someone who likes to lock things in for the long-term and is looking to settle down, you should consider buying.
If you have any questions about buying a home in Sanibel or Captiva, contact Kingfisher Real Estate today.