Rent Vs. Buy – Not Your Stereotypical Viewpoint
All the articles I’ve seen written on this subject are the same. If it’s written by a lender or Realtor, the answer is always buy. If you’re reading something from an apartment complex or property manager, then renting always makes more sense. If done by an accountant or other ‘numbers minded’ person then it can go either way based on a bunch of stats and numbers. In fact, I just did a rent vs buy calculator on a scenario of putting 5% down on a $200,000 home and the result came back that I should rent if I can get it as a rental for $721 or less. You can try the same here: http://www.nytimes.com/interactive/2014/upshot/buy-rent-calculator.html?_r=0
In summary, Realtors and lenders say buy. Apartments and those that benefit from renting say rent. All the mortgage calculators spit out numbers and responses that may be buy and may be rent depending on the numbers you input. What if you don’t know if all your input numbers are correct? Will the results still be accurate?
So what is the ‘right’ answer? Should you buy or should you rent?
There has to be an absolute truth or reality, right? Well, yes…and no.
You need to make the decision that is best for your reality. There are many factors to weigh in your decision, but ultimately you need to do what you are most comfortable with. Let’s list a few examples of factors to weigh in your decision:
1) Pride of Home Ownership – Is being part of a community important to you? How does owning make you ‘feel’?
2) Home care that a landlord would normally take care of – such as replacing an air conditioner. How much extra time and money could that include? Do you have the resources for that?
3) The Economics – What is your mortgage payment versus rent payment? Is that offset by any tax savings? What does the appreciation look like…if any?
4) Comfort – Do you feel safe and secure in the area that your budget allows you to rent or buy in? Are you okay with change?
Not everyone will weigh each variable the same. You may have some people that care only about making the economically ‘wise’ decision. Others may be paralyzed with the fear of change and disregard that all other indications are favorable.
That said, there are many factors to consider and we are happy to help each and every person come to a conclusion that is best for them.
Actually, let me rephrase: We are happy to help each and every person come to a conclusion that they feel is best for them.
Get in touch with anyone on our team to help answer all your questions and concerns.
We look forward to helping you purchase your new home…or not. j/k