In every adult’s life, there comes a time when they ask themselves if they should stop renting and start owning a home. You need to sit down and honestly discuss whether you are actually ready to go through the home buying process. Do you have enough saved up for a down payment and closing costs? Are you ready for the responsibility? Do you even qualify for a mortgage loan? When is it time to stop renting and start looking for a property of your own?
Home Renting vs Home Buying
Renting offers you the flexibility of being able to pick up and move when your lease expires if you want. Also, someone else takes care of the maintenance and upkeep on a property when you rent. If you love to travel or only plan on being in the area for a short amount of time, then renting might make more sense than owning a Lake Havasu home.
When you decide to buy a home, there are several factors to consider. First of all, do you qualify for a loan? Talk to a lender to find out. Second, do you have enough money saved up for the down payment and closing costs? First-time homebuyers with fair credit may qualify for just 3 to 3.5% down. When you pay $300,000 for a property, that means you need $9000 to $10,500 just for the down payment. Closing costs add a few more thousand to that.
Next, how long do you think you will be living in Lake Havasu? One year? Two years? More? If you only plan on sticking around for a year or so, you might want to continue renting. However, if you plan on staying for longer than that, become a homeowner. That allows you enough time to build up some equity in your Lake Havasu home to both recoup the costs of home buying as well as save up what it will cost you to sell it in the future. (Yes, there are costs associated with both.)
Would you like to personalize your property by knocking down walls or changing up flooring? Unless your landlord happens to be an extremely understanding individual, you limit your options when renting. Becoming a homeowner means you make the decisions on how your property looks (within HOA guidelines, if applicable).
Finally, while the Lake Havasu real estate market saw a major increase in home values over the past couple of years, that does not always happen. (Remember the late 2000s/early 2010s?) At any time, the market may start to decline. However, in the long run, real estate tends to be a solid investment.
When you decide you want to start the home buying process in Lake Havasu, contact me. I’d love to help you find your next home.