RENTING VS BUYING

Owning your own home has often been referred to as the “American Dream”. Before the housing crisis began in 2007, it wasn’t even a question as to whether or not you should try to buy a home. The thought was…..If you could afford it, you should do it!! The housing crisis has definitely taken its toll and made people stop to think before taking this leap. With current mortgage rates at an all-time low, the question has come up again, repeatedly. This could be the best time for renters to become first time homeowners.

Even though the real estate market has changed dramatically over the past few years, your thought process should still be the same as in the past. Some factors you should consider:

  • Hope for appreciation. As in the past, your home should appreciate in value over the years. The beauty of your home is more than just an increasing dollar value. Being able to make your home into something that reflects you personally is also a very rewarding.
  • Stay put. Be sure you are ready to stay in the same place for at least 4 years. Moving too early can cost you more than just the hassle of packing all your belongings. Moving too quickly will not allow you to build much equity in your home.
  • Be ready. Don’t just be emotionally ready to buy, make sure you’re financially ready as well. Build your credit and savings before buying; having both of these items in tip-top shape will help you secure a better interest rate on your mortgage!
  • Location. Buy in an expanding area. An area with a growing economy and employment opportunities will help bring greater value to your home purchase.

Still unsure about taking the big step, here are a few more items to ponder:

  Advantages Disadvantages
Buying:
  • Freedom to paint, remodel and change landscaping
  • Build Equity
  • Sense of stability, security
  • Not dependent on landlord for upkeep
  • Responsible for maintenance
  • Higher costs, taxes, insurance, etc.
  • Less mobility
  • Possibility of equity loss or even foreclosure
Renting:
  • Little or no responsibility for maintenance
  • Easier to move
  • No additional costs, like taxes or maintenance charges
  • No equity is built up
  • No control over rent increases
  • Dependent on landlord to make timely repairs, etc.
  • No freedom to decorate

Bottom line: after considering the factors above, if you feel like you are in the right place and at the right time in your life to buy a home, one of our Homesale real estate agents would be happy to help!

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