Jeff Rutt: Knowing when to buy or rent a home

Jeff Rutt Photo credit: revnyou.wordpress.com

Home builders like Jeff Rutt believe that a house is one of the most valuable investments a person can have. For most people, home ownership is a great achievement especially for the younger generations. However, financial experts agree that home ownership isn’t for everyone and that renting a home can sometimes be a more practical option.

For people to avoid the mistake of spending all of their savings on an impractical investment, they must first examine their lifestyle and needs to determine whether they should buy or rent a home.

Jeff Rutt Photo credit: eburcat.com

The New York Times has provided a buy-rent calculator for those who want to know which option would be less costly. For Jeff Rutt, buying a home is more practical especially if the homeowners are planning to stay in their home for the long term. As stated in The NY Times, homeowners can save over $1,700 each year when they choose to buy a house that they will live in for at least six years.

However, according to financial expert Suze Orman, buying a house comes with additional expenses such as property tax and homeowners insurance which, if added up, may be more costly than a month’s rent. Also, a new house requires new or additional furniture and appliances. If a person isn’t ready for these additional expenses, then renting may be the better option.

From Jeff Rutt

Aside from the additional expenses, people should look into their credit score before deciding whether to buy or rent a home. Financial experts agree that a high credit score can reduce the interest rate which is part of the mortgage.

By considering these things, people can be guided on when to invest in a home.
More information on Jeff Rutt and Keystone Custom Homes is available at www.keystonecustomhome.com.