Renting an apartment or home can make sense, but for many people, buying their home and having a rental property can radically improve their outlook.
I’ve heard that one in four renters could afford to buy a home. I own rental properties, and all the time I get applications through website portals like zillow.com and apartments.com from people looking to rent my units.
Just today I got another inquiry. Reading through the applicant’s information I read they are employed by a respected health care providers in Anchorage. They have a good job. Now sometimes I get college kids that put down they make 100,000 a year. That’s bogus information. But if someone works for South Central Foundation, or ANTHC – they likely do make 40,000 or more. That is an income that would help you qualify for a loan.
Does it always make sense to buy?
In short, no! It is a serious endeavor to buy and own real estate. If you told me you were only going to live somewhere for a year or two and then move away, most likely it doesn’t make sense for you to buy (the exception being that you are buying a rental / investment property that you will keep when you move away). I find that if you plan to live somewhere for more than two years, looking to buy makes sense.
How Do I know I should buy vs. rent?
This article is a great resource to help navigate it further: https://www.listenmoneymatters.com/rent-vs-buy/
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