Renting vs. Buying: How to Choose Your Next Home

When you have a good job and you’re confident you’ll stay with that company for several years, you might start thinking about whether you should buy a house. Homeownership can be one of the most rewarding (literally) experiences in life, but it can also be quite costly. If you’re currently considering renting versus buying, consider the following factors:

Choose a Neighborhood

Depending on where in Louisville you want to live, the home prices may be high enough that renting is clearly the better choice. For example, if you want to live in St. Matthews, be prepared to spend between about $148 per square foot for a modest single-story home. Apartments in St. Matthews charge roughly $1 per square foot for monthly rent.

Know Your Up-Front Costs

The minimum down payment for a home loan is 3.5%. For a $264,000 home, that’s $9,240, and that doesn’t include closing costs and other fees. Moving into an apartment, you may pay a damage deposit, pet deposit, and perhaps first and last months’ rent.

Keep in mind that if your monthly rent is reasonable, you might be able to save for a down payment. Ideally, homeowners should make a down payment of 20% to reduce their overall mortgage interest costs. 

Think About Long-Term Plans

When you own a home, you should plan on keeping it for at least five years (which is the soonest you’re likely to make money off the sale of that home). So if you’d like the freedom to relocate in the next five years, renting is a better choice. 

Improve Your Finances

If you don’t have perfect credit but want to buy a house, devote at least a year to cleaning up your credit. Pay off existing credit cards or loans if you’re able to, and avoid taking on new debt. When you’re ready to purchase a home, your efforts could help you qualify for the lowest possible interest rate. 

Comfortable Living in St. Matthews

Halsey Flats has spacious, pet-friendly apartments in St. Matthews for reasonable rents. When you live here, you have all the comforts of homeownership without the associated obligations. And you have access to a fitness center, swimming pool, and resident lounge with billiards and shuffleboard. 

Take a closer look at Halsey Flats. Call today to schedule a tour: (502) 806-8030.

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Jul 11

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