Buying Versus Renting A Home, The Old Debate

Why would someone write an article on buying versus renting a home?

What’s in it for the author of the article?

Why would you read one?

What is it you want to hear? Do you just want confirmation and justification for what you already believe and want to do? Or, are you looking to be convinced otherwise?

These are all good questions to ask yourself if you find yourself reading an article on whether it makes more sense to buy a home, or rent a house.

Buying Versus Renting A Home…That Old Debate

There are “reasons” to buy, and “reasons” to rent.

People want to make choices based upon reason. So, if you start reading about whether to buy versus rent a home, you’ll certainly be given “reasons”, like:

  • When renting you’re just paying someone else’s mortgage.
  • You’re throwing your money away when you rent. You have nothing to show for it. If you buy, you’re building equity.
  • Many of the richest people built their wealth through real estate.
  • Real estate is a great long-term investment. Values always go up in the long-term.

Certainly all valid to some degree.

But if you start reading articles bent on renting a home, versus buying, you’ll be given opposing “reasons”, like:

  • When you rent, you aren’t tied down to an area. You have freedom.
  • You aren’t responsible for the upkeep and maintenance when things break.
  • Real estate values are not guaranteed to always go up.
  • Your house could be less than you bought it for at times.

Again, all valid “reasons” to some degree.

Regardless of whether the article is pro-buying or pro-renting, the “reasons” cited tend to be the same, decade after decade, regardless of the market. They are overused, and pretty useless to anyone in particular.

There is no absolute answer that is right for everyone.

It shouldn’t be a DIY diagnosis

You can find plenty of “sources” to formulate your opinion on what makes sense for you.

There are online calculators to help you figure out if renting or buying makes more sense for you.

But that’s kind of like looking up health information online…

It’s good to get some thoughts and perspective. Educate yourself. But it’s not necessarily proper for you to diagnose and treat yourself.

Same when it comes to financial and real estate decisions.

Certainly educate yourself. Become informed. But truly assessing whether or not it makes more sense for you to buy a home or rent a house warrants getting some professional help.

Professional help can cost less than self-help. (At least in real estate…)

While you can certainly sift through all the information you want for free, and come to your own conclusion, you can also get the advice of someone who is a real estate expert for free.

All you have to do is reach out to a real estate agent. A good real estate agent will help you figure out if buying or renting makes better sense for you. They’ll help you assess your situation lend you their thoughts and insight based upon their knowledge and experience.

And most of them will do this for free. They get paid if and when you end up buying or renting a place.

Now, certainly, you might question their motives…

Will they push you to buy versus rent to make more money? Will they push you to rent because it’s quicker, easier money? Why would they help me for free? There’s got to be a catch…

Sure, there are some agents who are in it just to make money. But most real estate agents are more caring and concerned about their clients’ best interests, than their own self-interest.
That doesn’t mean every real estate agent will necessarily be able to give you the best advice, even if they are caring, concerned, and not pushy.

So, make sure you find a great agent when you ask for an agent’s advice.

(If they’re all offering their advice for free, you might as well choose the best, right?)

Who’s the best agent to talk to?

Considering this is my article, of course it makes sense that I feel like I’m the best agent for you to talk to.

The best way to find out is for us to have a quick chat. Maybe I’m the best agent for you to talk to… Maybe not. But if I’m not, I probably know another agent who may suit your situation better.

So why not give me a call, or send me an email, and let’s schedule a time to talk. No obligation.

I never push people to do one thing over another. If buying makes more sense for you, we’ll figure that out. If renting does, we’ll figure that out.

I just want to make sure you’re able to make the best and most objective decision possible.

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Why Rent If You Can Buy?

Why Rent If You Can Buy

Home ownership rates are the lowest they have been in the last 50 years. Yet a large portion of Americans are still renting properties, instead of enjoying a home of their own. Consumer reports believe this is an issue because of a buyer’s lack of trust in their ability to purchase. It is still a long standing notion that a buyer needs 20% towards the cost of the home in order to move forward, but this isn’t true. With countless down payment assistant programs, and closing cost roll-ins, a home owner could move in with as little as a few hundred to a couple thousand dollars. Which is a huge difference in the time it takes to save up to make the move.

With interest rates at an all time low, home ownership in today’s market is a great investment. The money saved over a mortgage’s lifespan can result in tens of thousands of dollars, if not hundreds. That’s more money in your pocket today. Don’t wait to buy when interest rates soar again. With low interest rates, that means your monthly mortgage payments are at a significantly lower cost, as well. With such a heated housing marketing, rental prices are soaring, and statistics are constantly showing that home ownership can be equivalent to your rental rate each month, if not less. Why get stuck in a small 2 bedroom apartment, if you can move into a home a pay a monthly rate that is the same, and get a 3 bedroom house with a great backyard?

There is also a fear that a home can keep you “stuck” or “rooted” to one place, without an easy transition out if you decide to move. Although the future of the housing market isn’t easily predictable from location to location, you can always discuss with your agent about buying a home in an area that has a strong turn-over rate when a home hits the market. The equity build up when it comes time to selling is going to be far more beneficial, than if you put money into a rental and decided to move. The money from selling the property can be used to purchase a new home. With renting, there would be no additional funds to transition into a new place.

Now imagine if you were renting a home for $2000/month. If your landlord is renting to make a profit, think how much less you’d be paying on a monthly basis towards your mortgage, if the home was yours. Then you wouldn’t be paying a landlord to profit off of you, you’d be paying a reasonable rate, and get to call the property your own. Discuss with your agent and lender the steps you need to take towards home ownership, you might be happily surprised about the type of home you can afford to move into.

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