If you are trying to decide whether to rent or buy a foreclosed apartment, your finances and the local real estate market may determine which the better deal is for you.
In some stages of your life, you may be content as a renter while in other stages you want to buy. If you are trying to decide whether to rent or buy a foreclosed apartment, your finances and the local real estate market will affect your choice.
Every type of housing situation has advantages and disadvantages. If you need a place to live quickly, it may be faster to rent an apartment than try to buy a foreclosure. The mortgage process can also take months. Plus, you need good income, credit and debt-to-income ratio to get approved for financing.
If your area is flooded with renters, as many places are, it may take just as long to rent an apartment as it does not buy one. In fact, in some locations, there are twice as many apartments, townhomes and homes for sale as they are for rent right now.
Current low interest rates may also help you decide whether to rent or buy a foreclosed apartment. Your mortgage payment may be much less than the elevated price of rent right now. Even if you buy a foreclosed home that has homeowner association fees, you may pay less per month than you would as a renter.
One of the main advantages of renting is that if something breaks, you don't have to fix it. If you own the apartment, your monthly maintenance fees pay for the upkeep of the entire building, but not issues within your home. This is one of the drawbacks of buying an apartment.
If you decide to buy a foreclosed apartment, a real estate agent who specializes in foreclosed homes can help you find a good investment. These agents have the expertise to help you find the right foreclosed apartment for your needs. They can help you negotiate a good price and close the deal. If you need an agent now, go to RealtyNow to find a local professional and look at property listings in your area.