Renting vs Buying

September 21, 2022/in Housing /by Cara Chatellier

Owning property is often considered one of the great landmarks of success and maturity. This mindset makes sense- it is no small feat to purchase a home! Though it should most certainly be something to strive for, buying a home before you are mentally and financially ready can be disastrous. You don’t want to purchase outside of your means, nor settle for a home you aren’t passionate about simply because you want one. There are many questions you should ask yourself before you begin the home-buying process, and an understanding of the current housing market in your area is vital. If you are reckoning with the pros and cons of buying vs renting, consider these factors before making the leap.

LOCATION, LOCATION, LOCATION

Are you comfortable in your current location? Is this spot somewhere you can see yourself in 5 years? 10 years? Reflecting on your location is key to deciding whether you should buy or rent in your current area. If you are unsure whether you want to stay put or take up space in another locale within the next 5 years or less, buying may not be right for you at this stage. Often we hear that renting is about pouring money into something that doesn’t belong to us, but in turn for the rent, you can live in an amazing space for a limited amount of time. In contrast, if you feel as though you want to stay where you are for the long run, it may be best to start the buying process so that you can invest in a property that belongs to you for years to come.

PURCHASING POWER IS KEY

Before you can make a sound decision on whether or not purchasing a house works for your lifestyle, you need to gauge your overall purchasing power. You can find calculators online that will give you a sense of how much you can afford. There are various factors that play into your purchasing power including credit score, savings amount, down payment, debt to income ratio, and payment history. Major debts such as past mortgages, credit cards, and car loans need to be factored into this decision. When determining your pre-approval amount, a loan processor will look at these factors to decide whether or not you are financially sound enough to purchase a home and how much you will be able to borrow. If you don’t meet all of the criteria or are on the lower end of the spectrum when it comes to purchasing power versus your wish list, renting may be the best option until you are able to bring all aspects to pristine health. During your rental period, focusing on cleaning up your credit and saving money diligently for your down payment are key aspects of growing your purchasing power.

THE FUTURE IS NOW

If you’ve decided that the home purchase route is the right one for you, consider what the future may hold. Reflect on questions such as:

Will I be married or have roommates now or in the future?
Do I plan to grow my family?
Do I want pets?
Do I plan to host holiday gatherings, events, or guests at my home often?
Do I want to build on or renovate a home or do I prefer a move-in-ready type?
What floor plan layout works best for my plans now and in the future?

Although you plan to purchase now, or in the near future, you must contemplate the wants and needs that may arise in the future. This way, your home will fit your changing lifestyle as you and your family grow and change. If you are uncertain of your future plans, renting would be the best option as you can oftentimes choose between a long-term or short-term lease agreement. Similarly, you may decide the timing is right for you but the market is not. Be sure to have a concrete understanding of the housing market before you make an investment that may not be as successful as you had planned.

When deciding whether renting or buying a home is the right option for you, there are many different factors to reflect upon before jumping in headfirst. Consider factors such as your financial buying power, your debt-to-income ratio, your savings and purchase plan, and your future personal goals. Understanding the full picture will allow you to make the best choice for you now. Still not sure what the best option is for you? Contact me today, I would love to help walk you through the process to determine the best route for you.

Renting vs. Buying: Deciding What Option is Best for You

October 14, 2020/in Education, For Sale /by Cara Chatellier

We’ve always been told that purchasing a home is one of the pillars to life’s success. We run through a checklist in our heads of what we hope to have by X age to make us feel accomplished. From marriage and children to a stable job that provides sufficient income and a nice car, a house is one of those achievements that tops the list for most. Rightfully so! Owning a piece of property that we can call our own is no small feat and should be an achievement we celebrate and strive for. Understanding when the right time to buy is key to getting the most out of your purchase. If your waffling between the ideas of buying and renting, consider these factors before making the leap.

Location, Location, Location

Are you comfortable in your current location? Is this spot somewhere you can see yourself in 5 years? 10 years? Reflecting on your location is key to deciding whether you should buy or rent in your current area. If you are unsure whether you want to stay put or take up space in another locale within the next 5 years or less, buying may not be right for you at this stage. Often we hear that renting is about pouring money into something that doesn’t belong to us, but in turn for the rent we pay we can get a pretty nice pad to stay in, so it’s not a total loss, especially if you don’t plan to be in the area forever. In contrast, if you feel as though you want to stay where you are for the long run it may be best to start the buying process so that you can invest in a property that belongs to you for years to come.

Purchasing power is key

Before you can make a sound decision on whether or not purchasing a house works for your lifestyle, you need to gage your overall purchasing power. There are various factors that play into your purchasing power including credit score, savings amount, down payment, debt to income ratio and payment history on major debts such as past mortgages, credit cards and car loans. When determining your pre-approval amount, a loan processor will look at these factors to determine whether or not you are sound enough to purchase a home, along with providing the amount of loan you will be allowed to borrow for your new mortgage. If you don’t meet all of the criteria requirements, or are on the lower end of the spectrum, when it comes to purchase power versus your wish list, renting may be the best option until you are able to bring all aspects to pristine health. During your rental period, focusing on cleaning up your credit and saving money diligently for your down payment are key aspects of growing your purchasing power.

The future is now

If you’ve decided that the home purchase route is the right one for you, consider what the future may hold for you. Reflect on questions such as:

Will I be married or have roommates now or in the future?
Do I plan to grow my family?
Do I want pets?
Do I plan to host holiday gatherings, events or guests at my home often?
Do I want to build on or renovate a home or do I prefer a move-in ready type?
What floor plan layout works best for my plans now and in the future?

Although you plan to purchase now, or in the near future, you must contemplate your wants and needs that may arise in the future. This way, your home will fit your changing lifestyle as you, and your family, grows and changes. If you are uncertain of your future plans or prefer not to completely reflect on them at this time, renting would be the best option as you can, oftentimes, choose between a long-term or short-term lease agreement.

When deciding whether renting or buying a home is the right option for you, there are many different factors to reflect upon before jumping headfirst into your option. Consider factors such as your financial buying power, your debt to income ratio, your savings and purchase plan and your future personal goals. Understanding the full picture will allow you to make the best choice for you now. Still not sure what the best option is for you? Contact me today, I would love to help walk you through the process to determine the best route for you.

Understanding HOAs: Is it Right for You?

July 17, 2020/in Community, Education, Housing /by Cara Chatellier

When purchasing a home, there are many boxes on your checklist to mull through to ensure you are finding the perfect fit for you and your family. Aside from location, home size, loan details and wish list items you may be posed with the idea of a Homeowner’s Association (HOA for short). Understanding an HOA and determining if it is right for you is key to buying success.

What is an HOA?

In short, a homeowner’s association is a group established within a specific community that manages the common areas, community amenities and set of rules and regulations. The association is made up on member’s elected by neighbors within the community. HOA’s are most commonly found in condominiums, townhomes and planned single-family neighborhoods. Within HOA’s you can usually find a document known as the Declaration of Covenants, Conditions and Restrictions (CC&R). This document outlines the community rules and regulations that each resident needs to follow.

Is there a cost for HOAs?

Yes. Generally speaking, the more amenities, the higher the cost. The HOA fee is separate from your mortgage and covers the cost of the community upkeep and amenities. Fees can sometimes differ within a community based on home size and upkeep requirements for specific locations. In most buying situations, you’ll have the opportunity to speak to an HOA representative prior to purchase, so make sure to ask about fees, increases and coverage so that you have a good handle on what to plan for budget-wise.

What amenities are included?

Amenities are based on specific communities. Some include a gated entrance for added security, a community pool, tennis courts, a community center for use during personal gatherings, free events, lawn maintenance or golf course access. Lesser, yet still important, amenities that are normally included are trash and recycling pickup and additional guest parking lots. A full list of amenities should be included with each home showing.

Do HOAs impose restrictions on residents?

It’s possible. The CC&R outlines the rules and regulations of your specific community. Some HOAs are strict on things such as lawn care, exterior home décor, parking, and, even, things like whether or not a garage door can be left open during the day. Make sure to review the rules in detail prior to making a final decision on your HOA home purchase.

What are the biggest pros of HOAs?

HOAs keep things running smoothly within a community if they operate effectively. Their rules and regulations assist in keeping the community safe and clean. HOAs give you access to amenities normally not included with a standard home purchase. HOAs have been shown to increase your home value by as much as 4.2%.

What are the biggest cons of HOAs?

Depending on your viewpoint, the controls imposed by HOAs can be considered a con. If you like to be fully in charge of your home decisions an HOA may not be right for you. The additional fee may also be looked at as a con depending on your budget. If an HOA is run poorly, lack of attention to the CC&R, additional fees and mismanagement are con contenders.

Deciding whether an HOA is the right choice for you depends on your home buying requirements. If you are looking to be part of a community that has additional amenities an HOA may be a great choice in your home search requirement. Consider both the pros and cons prior to deciding how you wish to proceed with your next home purchase.

How to Sell your Home when Fear sets In

March 19, 2018/in Community, For Sale, Housing /by Maura Allard

If I could coin one phrase I have been hearing repeatedly for the last two years is “I’m afraid we will be homeless”. Many people are ready to sell their home and either purchase a larger home, downsize to a smaller home or condo or just relocate to another area. What is stopping them from pulling the trigger on the listing? FEAR! Fear of their home selling days upon listing it and not being able to secure a new property to move to.

This is a real fear and a justified one, because in this busy market with low inventory securing a new home with a home sale contingency can be challenging. When I work sellers I encourage them to list their home with the contingency for the seller to find suitable housing. This will buy you some time, but there will be an end date so a plan B will be necessary. Sellers need to have a backup plan. Renting on a month to month basis and a storage unit should be your plan B. Nobody likes to move twice but moving twice may be better than feeling pressured to buy a home you don’t really LOVE and you should LOVE your home.

Thinking of selling, but scared where you’ll go? Let’s start talking!