To buy or lease?
Saturday Jan 23rd, 2021
You may wonder if you should buy or lease a home. The answer depends on what you will be using it for. Here are the pros and cons of buying or leasing.
When you are buying a home, you need to ask these questions:
- How much debt are you carrying?
- Do you have a reserve fund to cover the expense of buying a home?
- Do you have the down payment for a home? (Ideally you want to put down at least 20% to avoid CHMC mortgage default insurance.)
- Do you plan to stay in the same place for at least 3-5 years?
If you answered yes to all four questions, you are ready for the next step - to purchase a home.
If you are considering leasing a home, you need to ask the following questions:
- Are you currently paying off heavy debts?
- Does your job require you to move around?
- Do you need a temporary place to live until your new home is ready?
If you answered yes to any one of these three questions, then leasing is the right choice.
Whether buying or leasing, I hope you will contact me if you have any questions. I'm here to help!