Your credit score determines buy or rent: Is Buying A House A Good Idea?

Top credit score experts If you are thinking about buying a house, first you need to check different points. Nowadays you can look at the prices going up and how no one wants to buy at the top; everyone wants to buy low and get value growth that you can obtain with an elite credit score.

Home prices continue to climb and interest rates have gone up as well.

There is not a clear answer to if you should buy or rent a house, the answer depends on you, the necessities that you have, the money that you want to pay on the down payment, and the cost of the house vs the cost of the rent.

Down payments still tend to be the biggest expense for homebuyers.

Young people are having problems saving enough money to make the down payment on their homes. Over 50% of millennials have cited saving for a down payment as the biggest barrier to buying a home. So, think about where you are in your life before you consider buying. Are you a young man who can share the house and share the rent with other people as classmates or friends? or you are a family member who needs a home for the kids?

Interest rates play an important role in buying a house. Check your credit report as well since your credit score has a direct bearing on the mortgage you will get and the interest rate you may pay.

Renting a house doesn’t have to be the reluctant financially irresponsible second option, in many cases, renting might be a smarter move.

Usually, when owners look at the money gained from buying a home, they often watch the initial purchase price and then the ultimate selling price. The difference between the two is if one person bought a house for $300,000 and after ten years the same person sells the house for $600,000, people think that is $300,000 of pure profit. But this is not necessarily true, when someone buys a house, there are a lot of extra payments that you have to pay for: taxes, maintenance costs, interest payments, and indirectly inflation. You can see the inflation just going with your neighbors and see all the houses are now in $600,000, and watching that even if you “win” 50% the houses in your neighborhood costs in the present 50% more than 10 years ago. So, the truth is that you win a little amount or even nothing at all.

Truth is that the average global return on real state investment is too low and, historically, the stock market is better.

With the same money, you can make 3% or 4% more in profit than a house, the difference is that you have to be disciplined about saving money and investing it.

There are strong arguments on both sides, only you can choose the better option to make a decision based on your situation and personal needs.​​ At the end of the day, the choice is deeply personal and there is not a bad choice, but it’s true that there are many general rules that can help in your decision.