Should I Buy or Should I Rent?

Current real estate conditions have created a favorable buyer’s market. Since many areas offer low home prices and good interest rates, it may seem like the perfect time to buy a new home. But just because the market looks good doesn’t mean you should jump in right away. Your Chevy Chase real estate experts at The Estridge Group can help you determine whether to rent or to buy your next home. The following advice from the American Bankers Association can also help you decide how to make your next real estate move.

The Pros and Cons of Owning a Home

Unexpected costs are bound to arise. After all, no home is absolutely perfect. Renters won’t need money set aside for home insurance, real estate taxes and maintenance repairs. On the other hand, renters are unable to benefit from tax breaks associated with home ownership.

What’s Your Financial Situation?

The ability to afford your monthly payments is crucial when looking into the Chevy Chase real estate market. A larger down payment usually means smaller monthly payments. It’s always a good idea to keep your monthly payments close to 35-40% of your income. If you have large debts or outstanding loans that might prevent you from keeping your mortgage in this range, home buying might not be right for you at this time.

 High Score, Low Score

Your credit score is the key to determine what your interest rate will be. Usually the higher your score, the better your interest rate is. If you have a low credit score, you may want to take this time to improve it. If you decide to buy a new home, a higher credit score can save you more money in the long run.

Are You Planning to Stay in Chevy Chase, MD?

If you’re not planning to stay in your Chevy Chase home for a while, you won’t gain much investment value. Renting lets you move more freely.  However, the longer a home owner stays in his or her home, the more equity he or she can build.
If you would like more information on home buying or renting, feel free to contact us. We’d be happy to help you find the home that best fits your needs.