28 June 2012

Renting Versus Buying a Home in Tooele County

Renting versus Buying a Home in Tooele County

Just because you can buy a home in Tooele does not always mean that you should.  It’s important for you to consider if it is better for you to own or rent a home.

Here are five reasons you might want to rent:

1.     You may be moving within five years. It usually takes five years to break even on your home purchase or investment.  Taking into consideration closing costs, upfront PMI, down payment and other cash contributions needed to close on your home it make make economic sense to just pay rent for now.

2.     You don’t want the responsibilities associated with being a homeowner.  Owning a house can be expensive and time consuming.  Maintaining a home and taking the time for repair and upkeep is much less when living in a rental.

3.     You have a bad credit report.  If your score is below 620, you will not get a good interest rate. It takes time for credit ratings to adjust upwards, but the interest rate savings may make it worthwhile to wait to buy.

4.     You have a high debt ratio.  A high debt ratio means you may not qualify for a loan.  Pay off some loans and improve the rate lenders are willing to offer you when you buy a house or condominium in Tooele.

5.     You have job instability.  If your job is not secure, it’s not a good idea to buy.

Here are four reasons you might want to buy:

1.     You want to build equity.  The longer you own your home the more equity it will build. When you pay rent, that money goes down the drain.

2.     You get a tax break when you deduct mortgage interest.

3.     You want the emotional satisfaction of owning your own home in Stansbury Park, Tooele City or Grantsville UT.

4.     It’s an investment. With low interest rates and home prices, buying investment property is a wise decision.

If you are ready to buy a home in Tooele or purchase investment property, call me today at 435-840-5029 or visit our website @ www.tooelehomes4sale.com.

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