For many individuals, couples, and families, buying a new house isn’t on their list. Many think it’s more expensive and out of their range. A new home could actually be the thing that saves you money.
One the prime examples of where a mortgage is almost always cheaper than rent, is when you live in a large city. Las Vegas, Los Angeles, New York City, and Dallas are a few of the major cities where you can buy a house for cheaper than you can rent. In these cities it isn’t uncommon for rent costs to rise to well over $1,000! That’s quite a chunk of change for struggling families.
Though, all hope isn’t lost. If you have a good credit score and the ability to get a cheap loan, then purchasing real estate is the easiest thing in the world. It takes a down payment of about 20% or more, but it’s well worth it in the end. This down payment will automatically take a big chunk out of what you owe, and it truly makes a difference. Your interest rates will also be considerably lower than if you had a lower down payment.
An even better alternative is buying real estate and renting it out. Many more people are purchasing a large home and renting one or two rooms. If you have an $800 mortgage, you can charge each tenant in your home $200 and end up paying significantly less overall each month. This isn’t recommended unless you know your potential tenants, but it’s a much better option than pouring money into rent each month yourself.
One of the best things about your own home is the ability to have pets, children, and family members live with you. Most “rentals” require additional payments for a certain number of people, and outrageous add-ons per pet you own. This can result in much higher rent than you intended, which is why having your own home is ideal.
Cheap real estate is currently abundant, especially if you buy now. When the real estate market is not as strong, you can quickly find properties that are cheap and easy to buy. Even people with less than ideal credit are finding it easy to buy their first home. You can also get a tax credit for your first home purchase, which can make a big dent in your payments if you choose to put it towards that!
Closing Comments
The flexibility and cost of a new home is surprisingly lower in recent years. Now is the time to buy, and you can save quite a bit buying instead of renting each month! Make the change as soon as possible to prevent losing more money.
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