Buying vs Renting

Over the past 2 years selling Real Estate I have worked with a lot of first time home buyers. Which I LOVE :) 1st time home buyers are pretty high on my list of favorites. Working with 1st time home buyers brings about frequent questions about buying vs renting-- so today I decided to devote a post to this very topic. 

First off-- probably the most frequent question is "What's cheaper?" It all depends on the price of the house & where you are planning on living. However, I have sold numerous homes that were absolutely adorable to 1st time home buyers and they ended up having a cheaper monthly payment than if they were going to rent. 

I found a great tool on Realtor.com that may be helpful to you. It's a buying vs. renting calculator. Click here to go to the site. It's pretty neat, it will give you the option to type in a zip code, type in a desired rent price, and compare the area's buying vs renting costs.

If you are still struggling with your decision on what to do-- here is a helpful list to help you examine your current situation and decide what is best for you.

Popular Reasons to rent

(I pulled my top 4 from an article I found on Zillow)

1. Flexibility- Renting allows you to explore an area before making the longer-term commitment to homeownership. 

2. Bad credit- Creating a history of on-time rental payments can help you build the sort of credit you'll need to qualify for a mortgage.

3. No maintenance expenses. When a pipe leaks, you don't head to the store; you head for the telephone and call the landlord. 

4. Utilities (sometimes) included. In some instances, the landlord may pay for many utilities such as water, sewer, garbage, and, in some cases, even heat and hot water.

But there is a downside, too: You may have no control over the fluctuation of your rent, a big-budget item that can change often. Long-term budgeting becomes more difficult.

Reasons to buy

(I pulled my top 4 from an article I found on Zillow)
 

1. Equity- (*** this one is HUGE!) When you pay rent, you are paying your landlord's mortgage or adding equity to his or her bank account. However, when you have a home mortgage, you increase YOUR degree of ownership in your home with every payment. A general rule is that if you intend to stay in your property for at least five to seven years, the costs of purchasing the home are more likely to be offset by accrued equity and increased housing value. 

2. Tax deductions- You can deduct mortgage interest as well as your property taxes. Uncle Sam doesn't give renters this bonus.

3. Creative control- You like dozens of pictures on the wall? Well, hammer away -- they are your walls now. Go ahead and paint them mango! Wish you had another room? Go ahead and add one.

4. Maintenance choices- If you live in a house, you can decide how to approach maintenance, either doing it yourself or picking your own contractor. 

Anymore questions? Give me a call or send me a text and we can explore which option is best for you! I would love to help you find a home:)
260.609.8348