{"id":1933,"date":"2015-09-05T00:15:34","date_gmt":"2015-09-05T08:15:34","guid":{"rendered":"http:\/\/www.cultofmoney.com\/?p=1933"},"modified":"2015-09-08T20:21:06","modified_gmt":"2015-09-09T04:21:06","slug":"to-buy-or-rent-factors-to-consider-when-choosing-a-house","status":"publish","type":"post","link":"https:\/\/www.cultofmoney.com\/to-buy-or-rent-factors-to-consider-when-choosing-a-house\/","title":{"rendered":"To Buy or Rent: Factors to Consider When Choosing a House"},"content":{"rendered":"
<\/a>To buy or rent a house is a frustrating question to answer, but it is an important decision to take.<\/p>\n Plenty of people seems to think that buying is better than renting because the monthly bill you pay, adds to your assets and not into your landlord’s pocket.<\/p>\n It is easy to succumb to the pressure from your parents, suggesting that home ownership is a great investment<\/a>. But you have to be wise before you jump into it. Signing a purchase agreement, isn’t always the best idea. Sometimes, renting is a wiser choice.<\/p>\n To help, here are the factors to consider when looking for a place to live:<\/p>\n It is so easy to compare a rent against your mortgage but there are other bills you need to pay when you buy a house. One useful tool to check whether it makes sense to buy or rent is through the price-to-rent ratio.<\/p>\n To calculate, pick two similar properties, one is for rent and the other for sale. Divide the price by the yearly rent and you have the ratio. David Leonhardt of Business Time say that a P\/R ratio above 20 means, buying the property is much expensive than renting. In other words, sticking with a rental property<\/a> in your area is smarter.<\/p>\n A lovely neighborhood far from the business district is a satisfying place to live. But after driving from home to work everyday, you’ll realize that waking up early, traffic and long travel time are some of the reasons you should have stuck with an apartment near the office. Also consider the proximity to major establishments, like hospitals and retail stores.<\/p>\n Buying a house without a stable job makes no sense. Make sure you have enough income to pay for the mortgage. Plus, there are interests, repairs, closing costs and other extra fees that might overwhelm you in a long run. If you are unsure of your employment, it is better to rent and save money for emergency funds and future living expenses.<\/p>\nPrice-to-Rent Ratio<\/h3>\n
Proximity to Work<\/h3>\n
Stability of Work<\/h3>\n
Lifestyle and Expenses<\/h3>\n