If you’re a renter and sitting out the market, make sure you’re out for the right reasons. When was the last time you did a rent/buy analysis and checked your assumptions? In a time of rapid change, it makes sense to re-evaluate your position every 3-6 months.
Great reasons to stay out of market include:
- Job insecurity,
- The belief that property prices have more downside than upside,
- A lack of cash,
- A damaged credit score
Reasons to reconsider the market include:
- The flip-side of all of the above,
- Changing life circumstances (such as marriage, children, etc.)
- The need for tax write-offs based on your personal financial situation
Whatever your decision, make sure it’s informed by current life and market conditions, and repeat the process to avoid assumption build-up and potentially missing a good opportunity.