Trying to decide between renting or buying a Vero Beach home used to be a no-brainer before the recession. Most advisors would say, buy a home as soon as you can because it was the route to financial independence, forget renting because it was a waste of money.
Today, many people who would have once jumped at the chance of buying a Vero Beach home are thinking a little more about it and weighing their options.
Attitudes about homeownership have shifted, according to "How Housing Matters: The Housing Crisis Continues to Loom Large in the Experiences and Attitudes of the American Public," by the MacArthur Foundation.
When asked, compared with 20 or 30 years ago, how likely it is for families today to build equity and wealth through homeownership, two-thirds of respondents to a poll accompanying the report said it is less likely than in the past. And that sentiment was pretty consistent along all income and age groups.
Buying a Vero Beach Home Tempting
Now that things are improving in the Vero Beach housing market, people may be tempted to rush into homeownership because they want to take advantage of lower home prices. Or they are afraid of missing out on still fairly low interest rates for home mortgages.
The big decision point is, if the time isn't right and your numbers don't work, keep renting and keep saving.
Some people in the MacArthur poll deciding to buy instead of continuing to rent had to get a second job, stopped saving for retirement or racked up credit card debt trying to cover their housing expenses.
The study revealed that families are spending 40 to 50 percent or more of their net monthly income on housing. If you are spending more than 30 to 36 percent on housing, you're probably headed for trouble. It's why most lenders use that magic 36 percent figure to qualify you for a mortgage. If you're spending more than that, they fear you may be in over your head, and the last thing they want is for you to default on your loan.
Obviously we are a huge advocate of homeownership. However, when it comes to something as important and expensive as a home, you should take it slow. Take as much time as you need to become comfortable with the decision of buying a Vero Beach home. And when the time is right, we'll help you find the home of your dreams.
Call us or fill out our brief inquiry form at this site and we'll help you decide between renting or buying a Vero Beach home and which is right for you.
