How To Know When It Makes More Sense To Buy Than Rent

by THE CUOMO TEAM Kimberly Cuomo 11/18/2018

Renting is a great short-term housing solution for millions of Americans each year. And, for those who don’t want the responsibilities of homeownership, it can also serve as a longterm lifestyle for those uninterested in equity. However, if you do hope to someday purchase a home, there are several reasons it is one of the best financial decisions in the long run.

Finding out when is the right time to buy a home is a difficult question to ask yourself. You’ll have to consider your current budget and future financial goals, your employment situation, and personal lifestyle preferences.

In today’s post, I’m going to discuss several of these considerations to help you determine if now is the time to buy a home or if you should continue renting for the time being.

Mortgage rates through history

One of the features of homebuying that is largely out of your control is the historical average mortgage interest rates.


While your specific rate will be based on things like your income and credit score, as well as the type of mortgage you choose, real estate trends will also have an impact on the rate that lenders use.

Rates are, on average, lower in the last five years than they were throughout the 80s, 90s, and 00s. With rates under 4%, these levels are unprecedented in the last 3 decades. However, last year did see a slight increase to 4.1%.

What are your long and short-term plans?

Many people who are considering buying their first homes are more concerned with whether it’s  financially feasible than if it fits into their life and career goals.

Before you start shopping for houses and contacting lenders, it’s a good idea to sit down with your family or significant other and start thinking about a timeline.

First, are you prepared to live in your next home for 5-7 years? This a good baseline for the amount of time you need to stay in a home to make it worth the costs.

Next, would you have better career or education prospects if you were to move elsewhere in a few years?


Of course, these questions are not objective--you may never know for sure which is the best decision. However, having the conversation is vital to moving forward.

Are you prepared for the extra workload?

Homeownership is work. Aside from just having to mow the lawn and take out the garbage, you’ll also be responsible for repairs and maintenance that previously your landlord was required to do.

The good news is you can learn most things on YouTube. However, some repairs can be costly and require calling in a professional. Just like owning a car, homeownership has it’s associated upkeep expenses.

However, with that added responsibility comes independence. You can paint and change your home how you see fit without worrying about losing a security deposit.


Start considering these questions now and in due time you’ll have a better understanding of your current and future goals. This way, you’ll be able to choose the best possible time to buy a home.

About the Author
Author

THE CUOMO TEAM Kimberly Cuomo

The Cuomo Team - 24 years experience serving South Florida's Real Estate needs!

Specializing in Residential and Commercial Real Estate Services - 

I am a dedicated Realtor specializing in Palm Beach, Martin, and St. Lucie Counties. The commercial division of our team covers Central Florida, and all of South Florida including Broward and Dade Counties. 

I pride myself on being honest and professional. I have been committed for the past 24 years to have all of my clients 100% satisfied with my services, at all times- from the first time home buyer, luxury client, to commercial property investor- and everything in between! In this ever-changing marketplace, it is imperative to have an experienced Realtor. It can make all the difference in the world in your transaction! I have been successful in accomplishing this based on a long list of satisfied clients! I would be honored to help you buy or sell your next property! 

I have lived in the local area for over thirty years. After college, I worked as a paralegal for five years before deciding to go into the real estate profession in 1998. My husband, John, and I have resided in the Town of Jupiter for the past thirty years and consider it a great place to live, and have raised a family. We have two sons, 22 and 25.

One of my sons, Matthew Cuomo also works on our team, along with my daughter in law, Tasianna Cuomo. John, a retired firefighter from the Town of Palm Beach, works in the Commercial Division. My sister in law, Christine Cuomo Georgeou, also is part of our team, so that someone is always available to service any client, any time, 7 days a week! 

You can contact me directly anytime at 561-339-3002, and I will be happy to assist you with any of your real estate needs! I look forward to hearing from you!

Kim Cuomo

Keller Williams Realty

KW Commercial