John Colby


Posted by John Colby on 4/8/2018

Renting is a great short-term housing solution for millions of Americans each year. And, for those who donít want the responsibilities of homeownership, it can also serve as a longterm lifestyle for those uninterested in equity. However, if you do hope to someday purchase a home, there are several reasons it is one of the best financial decisions in the long run.

Finding out when is the right time to buy a home is a difficult question to ask yourself. Youíll have to consider your current budget and future financial goals, your employment situation, and personal lifestyle preferences.

In todayís post, Iím going to discuss several of these considerations to help you determine if now is the time to buy a home or if you should continue renting for the time being.

Mortgage rates through history

One of the features of homebuying that is largely out of your control is the historical average mortgage interest rates.


While your specific rate will be based on things like your income and credit score, as well as the type of mortgage you choose, real estate trends will also have an impact on the rate that lenders use.

Rates are, on average, lower in the last five years than they were throughout the 80s, 90s, and 00s. With rates under 4%, these levels are unprecedented in the last 3 decades. However, last year did see a slight increase to 4.1%.

What are your long and short-term plans?

Many people who are considering buying their first homes are more concerned with whether itís  financially feasible than if it fits into their life and career goals.

Before you start shopping for houses and contacting lenders, itís a good idea to sit down with your family or significant other and start thinking about a timeline.

First, are you prepared to live in your next home for 5-7 years? This a good baseline for the amount of time you need to stay in a home to make it worth the costs.

Next, would you have better career or education prospects if you were to move elsewhere in a few years?


Of course, these questions are not objective--you may never know for sure which is the best decision. However, having the conversation is vital to moving forward.

Are you prepared for the extra workload?

Homeownership is work. Aside from just having to mow the lawn and take out the garbage, youíll also be responsible for repairs and maintenance that previously your landlord was required to do.

The good news is you can learn most things on YouTube. However, some repairs can be costly and require calling in a professional. Just like owning a car, homeownership has itís associated upkeep expenses.

However, with that added responsibility comes independence. You can paint and change your home how you see fit without worrying about losing a security deposit.


Start considering these questions now and in due time youíll have a better understanding of your current and future goals. This way, youíll be able to choose the best possible time to buy a home.




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Posted by John Colby on 7/16/2017

Apartments in some cities and municipalities offer as much space as the average size house. Amenities in apartments make living at the rentals comfortable and flexible. There are granite kitchen and bathroom counters, large walk-in closets and spacious bedroom en suites, to name a few apartment amenities.

Why it might be time to transition from renting to owning

With amenities like these, you can feel like you're living at a house even while you rent an apartment. But, that doesn't mean that it always makes sense to keep renting a house or an apartment. When you rent, you're not in complete control of your living arrangements. Your landlord is.

Generally, renting a house offers more independence when it comes to making decisions about your living space than renting an apartment. However, regardless of where you rent, your landlord may communicate that you cannot:

  • Keep large dogs in your apartment or leased house
  • Upgrade bathroom or kitchen cabinets
  • Plant fruit or vegetables in the front or backyard, even easy to care for food like tomatoes
  • Install a different style of windows at the property
  • Allow guests to stay at your apartment for longer than three to four weeks without getting management approval
  • Rent  one or more rooms even if you are not using the space
  • Barbecue on your front or back porch or in outdoor areas besides set barbecue cooking locations near the clubhouse or recreation center

More reasons to stop renting

Lack of authority to have any type of pet that you want at your home or redesign and style the property the way that you want is only one reason why it might not make sense to keep renting. Check out these other reasons when it doesn't make sense to keep renting:

  • Less opportunities to build real estate equity - You'll never own property that you rent unless you enter a rent-to-own agreement with the current owner of the property.
  • Rising rents - It's not uncommon for landlords to raise apartment and housing rents once a year or every two to three years.
  • Fewer chances to make money off the property - Owning your own home gives you the chance to earn income from the property. For example, you could rent out your house while you take ownership of another house, broadening your real estate equity.
  • Limited parking options - Although parking lots at apartment complexes are large, you have a limited number of parking spaces that you can use. If parking at apartment complexes is small, the apartment management might only be allowed one parking spot per resident.

It's true that renting removes the need to pay for and perform house repairs and general maintenance. By renting, you also avoid taking on a mortgage. What you don't get when you rent is assurance that, despite inflation and other economic shifts, your monthly housing costs won't change. You also generally won't have the authority and legal right to make any design and structural changes to property that you rent whenever you want.




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