Whether you are a first-time home buyer or someone who has previously owned a home, there comes a time you might wonder if it is better to rent or buy your home. Interest rates are scheduled to rise this year and realtors suggest this is a good time to buy. What if you are not ready to buy and cannot decided if you should buy or rent?
If you are rebuilding your credit score and hear about increasing interest rates, consider that taking an extra year or more to increase your credit score and buying power should cause you to have a lower interest rate, compared to getting into a mortgage where your credit just barely qualified for the loan. More money down can also be a benefit worth waiting to buy and renting a little longer.
The cost of home ownership in the Chicago area
While you are building equity when you own a home, there are all kinds of extra costs and expenses that can outweigh building equity. For example, if you buy an older home you may be spending money on replacing the roof, furnace, water heater, or air conditioner. If you had been renting you would have simply made a call to your landlord for those repairs.
Taxes are also an expensive part of your monthly mortgage payment, when taxes and home insurance are included in your monthly payment. That said, you can also claim a tax deduction for property taxes paid up to the new $10,000 limit.
Alternative ways to invest for retirement
Say you can afford to buy a new home but not where you want to live. Have you considered keeping your rental home in Chicago and buying a new home in Will County to lease to a renter? A new home with few needed repairs can be an excellent investment, especially in the collar counties where there is new growth and anticipated increases in future property values.
By the time you are ready for retirement you may want to go live in that home in Will County or sell it and take your equity to wherever you plan to retire.
If you have questions about making the right financial moves, regardless of whether you have had or will ever a have a bankruptcy, a consumer finance attorney at Joseph Wrobel, Ltd. is happy to help steer you in the direction of financial success.
About us: Joseph Wrobel, Ltd., works with clients to find out if they qualify for Chapter 7 or 13 bankruptcy, and their options and rights under the law. The firm will also advise and assist clients with questions and concerns about the collectors and their rights to pursue you.
Joseph Wrobel, Ltd. helps people get control of their finances and a fresh start at financial freedom. The firm’s website contains informative videos about financial issues as well as bankruptcy protection for families who want a fresh start. (312) 781-0996.
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