If you’re interesting in buying a home in New Jersey, the current financial economy and housing market might come as a big surprise. Mortgage rates have skyrocketed, but home prices continue to stay high, making home financing a challenge for many families. As a result, many homebuyers have started to ask their Realtor if it might be better to rent instead of buying a house right now. Here are our thoughts.
The Economy is Uncertain; Buying a House in NJ is A Lasting Investment
While the economy may vary, your home purchase in New Jersey is a major investment that can last for decades. If you do choose to finance your home purchase, you may not be locked into today’s rates—if the economy changes, you can always refinance in the future. While everyone hopes that costs will go down, they have been steadily rising. There may not be many lower-cost options in the future either, so sometimes you have to accept the costs.
Consider Your Future Before Buying A Home
The economy shouldn’t stop you from buying a house in NJ, but your plans are very important. Do you know that you want to stay in New Jersey and live in the community where you are buying your home? Or are you a traveler who would love to move in a few years? Even if they are high, can you cover the costs of a home right now with a stable income? Just like when the economy is stronger, the facts of your life are really more important than anything else.
Here’s When Renting Is Smarter Than Buying A House in Sparta
Renting a home in NJ has historically been more costly than buying one. In today’s market, the costs are about even. If you’re not sure whether you should rent or buy, try calculating your expenses until the next time you plan to move. Renting can save you from being trapped in a mortgage you can’t afford, but may also come with hidden costs, such as application fees, security deposits, and background checks—plus the hassle of moving frequently. If you know that you aren’t planning to stick around, or if your finances aren’t secure for the future, renting may be a better option than buying for a few years.
Most of the time, buying a house in NJ is a worthwhile investment that will pay itself off over time. For help determining if a home purchase is in your future, get the advice of That British Agent and the rest of the team.