To rent or not to rent is a question many people ask themselves when moving out of their parents’ house. Renting has the advantage of being affordable, though still expensive in certain areas. Buying a house is intimidating for almost anyone, but something many people dream of doing. No one can make the decision for you but you. Weighing your own costs and benefits is key to a smart financial decision. However, if you are concerned about bankruptcy, feel free to talk to a Tennessee bankruptcy attorney for help.
CHEAPER TO RENT OR BUY A HOME?
Whether you should rent or save up to buy a home depends on your financial situation and personal goals. Some people want a house right away while others do not mind renting or staying in an apartment. Others may not be able to afford to buy a home until much later.
When it comes to first-time homebuyers, the real question some people have is which option is cheaper. Renting is cheaper in the short term because monthly rent prices are often lower than monthly house payments. The same goes for the down payment. Buying a house often comes with a hefty down payment.
Buying a home is more expensive in the short term but cheaper in the long term. When you rent or stay in an apartment, your monthly payments never come back. You lose that money forever and no real financial goal is being accomplished with that money. Whereas, making monthly house payments is accomplishing a goal, paying off your home.
This makes your monthly house payments temporary. The fact that you can own the place you live once these payments are done is what motivates many people to buy a home. You feel like your hard work and monthly payments are paying off. Deciding this for yourself means determining whether you can save up for a home down payment and afford the monthly house payments.
TIPS FOR BUYING A HOUSE
Buying a home is one of the most expensive decisions many people make in their lives. Part of the tricks for buying homes is cutting back on your expenses for at least a year. This means you may have to live in harsher conditions with lower quality food, entertainment, and other costs until you can buy the home you want.
Save as soon as you can for the down payment you are going for. Whether this is $10,000 or $25,000, save that first. Follow a budgeting plan to do this and make sure you have at least three months’ savings for those monthly payments. You can also check out financial aid for buying homes like house loans, veteran programs, and homeowner voucher programs.
BANKRUPTCY ATTORNEY IN TULLAHOMA, TN
When your debts and house payments become overwhelming, bankruptcy may become your last option. You can call us today at Tom Bible Law by dialing (423) 690-7712 for advice on your current financial situation. Our dedicated Tennessee bankruptcy lawyers are prepared to look at different options for bankruptcy for you. You can find us located in the Tennessee cities of Chattanooga, Kingsport, and Tullahoma.