But things continue to change at a rapid rate. Sometimes it feels like there is no longer rhyme or reason to what is happening in the market.
And many individuals are recovering from a house foreclosure, or other economic devastation in their lives.
However, as the dust continues to settle from the upheaval, individuals, couples, and families start to explore the possibility of purchasing a home.
How to Decide Whether to Rent or Buy
The real estate environment appears to be stabilizing. Regardless, you feel uncertain or skeptical due to personal circumstances. You ask yourself, “How to decide whether to rent or buy?”
In the past, the common scenario of someone who was a renter was a young individual or couple, just starting out in adult life. However, our changing environment and lifestyles have made renting more common with those who relocate. A temporary work assignment and also empty nesters who no longer desire to remain in their big family home are both life situations that now require a decision whether to rent or buy.
This decision is truly a personal one, based on your own desires and circumstances. I don’t believe making a blanket statement that “Buying is better than renting” or vice versa can be made.
Look at your own circumstance to determine how to decide whether to rent or buy. It’s true that in our environment today, “doing the numbers” may likely show you that your house payment on a home you like is less than if you rented an apartment that meets your needs. There are lots of useful online calculators here.
Nevertheless, if you purchase a home, you will likely need a down payment. Furthermore, you must factor in property taxes and utility costs (an apartment or smaller rental will probably cost less). Additionally, maintenance of the home will definitely be more costly in terms of money and time.
Are You Planning on Staying Awhile?
What are your plans? I know people who want to find their “forever home,” or at least a home they plan on living in for over 5 years. If you have a job that you are fairly certain you’ll be working at for several years; if you’re choosing to live in a town or city that you absolutely love; or you simply have a mindset of setting down roots in one place, then purchasing a home is probably a good choice.
On the contrary, if you’re the nomad type, and enjoy the freedom of being able to move elsewhere when the mood strikes, then renting is probably best for you. Many people also don’t want to take on the responsibilities of home ownership, such as general upkeep of a house, or potentially costly (and usually unexpected!) repairs.
These people (and those whose circumstances require them to move within a couple of years) usually like the fact that they have a pool, fitness center, and other amenities at their disposal. Of course, they are “paying” for the use of these amenities in their monthly rent, but they like the fact that the upkeep of these things is not their responsibility. Even if they are renting a house, the landlord has the responsibility of paying taxes and other expenses because he or she owns the house.
Final Thoughts
How to decide whether to rent or buy is important. It impacts your entire life significantly and should be carefully thought out.
I can help you determine what is best for your situation and make recommendations. Because this is such an important decision, having an expert or two who can assist you is invaluable (read my recent blog, “How to Choose a Good Realtor”).
Contact me for a no-cost consultation of your current situation. I can help you determine your best course of action.
I look forward to hearing from you!
Dana Davis
Dana Davis Properties/DHR (Distinguished Homes Realty)
Phone: (386) 569-4998