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It’s
an age-old question and even in today’s largely buyer-centric marketplace the
question still arises in many people’s minds “should I buy a home or should I
rent?”
Truth be told, today’s interest rates are unprecedented. Mentioned time and again by such investment gurus as Warren Buffett and Donald Trump, not to mention countless industry analysts and experts, these historic lows give buyers so much more to work with.
With rates hovering in the low 3s and even lower for shorter term mortgages, buyers can afford so much more house these days with the same amount of payment. In terms of whether or not renting is a better choice there are several factors to consider.
Reasons to Buy a Home Instead of Rent
Truth be told, today’s interest rates are unprecedented. Mentioned time and again by such investment gurus as Warren Buffett and Donald Trump, not to mention countless industry analysts and experts, these historic lows give buyers so much more to work with.
With rates hovering in the low 3s and even lower for shorter term mortgages, buyers can afford so much more house these days with the same amount of payment. In terms of whether or not renting is a better choice there are several factors to consider.
Reasons to Buy a Home Instead of Rent
We’ve
already covered interest rates but it’s more than just what your monthly
payment is or how much house you can afford with the lower monthly payments.
With the cost of borrowing so low, many times buyers can obtain an assumable
loan making their home a very viable property for future sale.
Add to the very low cost of borrowing the fact that prices are lower than they have been in a long time, and it’s a win-win situation because in most cases the monthly expense is less than if you were to be renting.
The fact that equity building is rarely possible with rent situations, what better than to own your own home and build value? In fact, with today’s low prices and rates combined when we see appreciation, it will be noticeably significant.
One more factor that many renters love from the moment they take the plunge and decide to own their home – is the sense of autonomy. The home is yours and you can do with it whatever you want. You can have pets or not. You can hang window coverings that suit you without restrictions. There are fewer rules and regulations to worry about than in a leased home.
Why Renting Might Make More Sense
Add to the very low cost of borrowing the fact that prices are lower than they have been in a long time, and it’s a win-win situation because in most cases the monthly expense is less than if you were to be renting.
The fact that equity building is rarely possible with rent situations, what better than to own your own home and build value? In fact, with today’s low prices and rates combined when we see appreciation, it will be noticeably significant.
One more factor that many renters love from the moment they take the plunge and decide to own their home – is the sense of autonomy. The home is yours and you can do with it whatever you want. You can have pets or not. You can hang window coverings that suit you without restrictions. There are fewer rules and regulations to worry about than in a leased home.
Why Renting Might Make More Sense
There
are some reasons that renting is a better choice for some people. In light of
our housing market challenges from just a few years ago many people are still
working on rebuilding their credit and financial outlook. There may be
uncertainty with job location and the looming potential of a transfer could
contribute to house-buying apprehension. In the same way, you may not know
exactly what your housing needs are; is there a family on the way and will
there be enough space? What type of housing will work best for you and your
family? Homeowners that prefer to avoid maintenance concerns and like the idea
of someone else handling all of that may lean toward a leased home, though
condos can take care of that issue. A lot of times people are afraid of the
commitment itself that goes with buying a house. For them, perhaps waiting
until they feel the time is right may be in order.
~
With
the housing market as it stands right now, the cost to rent is definitely
higher than to buy a home these days. Many people shy away from the prospect of
buying when the think of the down payment but the truth is that the majority of
loan products nowadays require a minimal down payment, often very close to the
amount you’d expect to pay when renting. The expense that goes into the first
and last month’s rent plus security deposit, for an average single-family home
that rents for about $1600 a month can easily be channeled into a purchase if
all the other factors line up.
If you would like to explore your options, we invite you to contact us today. Our expert team will sit down with you and carefully consider all available alternatives so you can make an informed decision. We look forward to serving you!
If you would like to explore your options, we invite you to contact us today. Our expert team will sit down with you and carefully consider all available alternatives so you can make an informed decision. We look forward to serving you!
