Are you trying to decide whether you should rent or buy a house in New Orlean? In our latest post, we offer some questions to ask yourself to help you make the decision!
Like many others, you may be trying to decide if you should rent or buy a home in New Orlean or the surrounding area. There is no right or wrong answer! Consider the following questions before making a decision.
How Long Do You Plan On Being There?
No one can predict the future, and sometimes our most well thought out plans can change. Regardless, you should have a pretty good idea of how long you want to live in your next home. Are you ready to lay down some roots, or is your next place a stepping stone to something else?
When it comes to numbers, if you want to make a profit when reselling the home, you will need to live there for 2-5 years. This allows time to compensate for the expenses of purchasing a home, such as agent commissions and closing costs.
How Stable Is Your Job?
If becoming a homeowner is something you’re considering, it’s vital that you have stability in both your work and personal life before getting into a monthly mortgage payment for the foreseeable future. Maybe you are jumping around a bit career-wise, and that’s okay. If this sounds familiar, you may want to wait until you are more grounded to purchase a home.
Do You Have Money In The Bank?
You will want to set aside some savings, whether you rent or buy. In addition to the likely repairs needed, you also have to consider the down payment, closing costs, inspections, and commissions when buying a house the traditional way. Some of these expenses can be avoided if you buy directly from a private seller or from a company such as U.S. Direct Home Buyers.
When renting, in addition to a security deposit, you will usually need to come up with the first and last months rent. This can quickly amount to a few thousand dollars depending on the property.
Do The Math
Before renting or purchasing a house in New Orlean, do the math! There are many online calculators offered to help you compare your options. Whichever path you choose, you should always make a thoughtful and feasible decision according to your situation. While you do make more money building equity over time, if you cannot afford the increase in expenses upfront, renting may be the better choice for you. U.S. Direct Home Buyers can help you run the numbers so you can decide whether to buy or rent a house in New Orlean!