In times of economic uncertainty, people often have questions about housing. One of the most frequently asked questions is whether it’s better to rent or buy housing during a recession. If you’re considering that question yourself, here are a few points to consider.
Is Your Job Recession Proof?
If you work in a “recession proof” industry, you may be better off buying a house instead of renting. If you keep your job, you can take advantage of low home prices. However, if you work in an industry that could be impacted by the recession, you may be better off renting. No one wants to be stuck with a mortgage that they can no longer afford. The flexibility, low upfront costs, and shorter-term obligations you have while renting can save you from a potential foreclosure.
Do You Have Savings?
Even if you have a job that is reasonably recession proof, you might not have a comfortable amount of savings to act as your safety net. Without a safety net, you may not be able to afford a house down payment while keeping a recession emergency fund. Qualifying for a mortgage can also be more challenging during a recession as lenders are more risk averse. In this situation, you could be better off renting and saving.
What Can You Afford?
House prices tend to go down during recession, as does rent. However, rent prices can go back up after a recession, while fixed-rate mortgage payments stay consistent. If you have the means to lock in an attractive mortgage that you can afford, buying may be the best choice. If this isn’t the case, renting can be a better option.
Lady Lake, FL, Apartments You’ll Love
If you’re looking for a gorgeous apartment in Central Florida, come see The Quarters Apartment Homes. We’re a luxury apartment community in Lady Lakes, FL. Contact us today to hear more about our housing options or to schedule a tour.
