Real Estate in Worcester Ma. offers plenty of home types.
One of the biggest personal investments that most people will ever make is buying a new home. Purchasing one of many Worcester Ma homes for sale can be a great way to build long-term wealth and reduce your personal tax liability. It can be costly when compared to renting a home in Worcester County Ma. When trying to decide between renting and purchasing a new home, there are several factors that need to be considered before making your final decision.
Time Before You Move Again
The first factor that needs to be considered when deciding between renting or buying your next home is the amount of time that it will be before you need to move again. When you own your own home there are many costs that can be incurred at the time of your purchase and sale. These costs overall can be equal to ten percent of the total acquisition price. When factoring these costs into the total equation, it can easily take three to five years before you will ever break even on the purchase of the home, after factoring in principal reduction and value appreciation. Since you do not want to lose money on the purchase of a home, it would be a good idea to rent if you are planning on moving within the next few years.
Cost of Renting Versus Owning
Another factor that you need to consider is what the true cost of renting versus owning will be. Prior to the housing crash, renting an apartment in most cities was much more affordable than owning a home. However, after prices declined for several consecutive years and the demand for rental units increased, the price of renting compared to owning a home increased dramatically. In fact, in many cities it is actually cheaper to own a home than it is to rent one. Worcester Ma tends to see stability in the homes and apartments for rent because of the abundant supply available. If you happen to live in a city where rental prices are very high, it could be a good idea to own as opposed to wasting money on rent as you could actually save money each month. The financial savings are even more significant once you factor in principal reduction and tax deductions that you will receive as a homeowner.
The third factor that you need to consider prior to purchasing a new home is your personal financial position. While owning a home can be a good long-term decision, it may not be possible for some people, depending on their personal financial positions. In order to qualify for a decent mortgage, you will likely need to have a credit score of at least 700, have a sizable down payment, and have a stream of income that could comfortably support the loan payments. If you do not meet all of these requirements, it could be difficult to qualify for the loan.
At S & R Properties we are committed to making your homeownership dreams become a reality. If purchasing or selling in Worcester County is something you are considering we would like to discuss how we can be part of the solution for you. We never push a sale and always give honest and sound advice.