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Welcome to my Real Estate advice column, “Dear Don,” where I answer all your burning Real Estate questions. Send yours to me at donkoonce@windermere.com, and I’ll try to answer them in future columns.
Dear Don:
Is it better to rent or buy?
Questioning Carla
Dear Carla:
Whether is is better for you to rent or buy really depends on your individual situation. Some questions to ask yourself:
1. What is my motivation for wanting to buy?
2. How long do I plan to live there?
3. How do I feel about maintaining my home and possibly a yard?
4. Am I financially secure?
Advantages of owning:
- It’s cheaper than renting. Although buying a house is more expensive at the outset, if you play your cards right, it can be cheaper than renting in the long term.
- The drastic difference in costs are attributed to the rising costs of rent and the low fixed-rate mortgage rate. Owning a home offers the long-term benefits of security, equity and potential growth in personal wealth.
- The value of a home will appreciate over time and if you decide to sell, you can earn a profit off the sale.
- When you buy a house, it becomes your legal property, which allows you greater freedom in its use without restrictions often enforced by a landlord.
Advantages of renting:
- Renting a property allows more flexibility than owning a home.
- After paying rent, a tenant may have additional money which they can use to invest elsewhere, whether it is saving towards buying a house or investing in the stock market, rather than worry about putting additional funds into a home loan or maintenance.
- Renting a property allows more flexibility than owning a home. This is ideal for those who could be faced with sudden changes such as a job relocation.
- Renting requires no long-term commitment from a tenant and is the best option if you don’t intend on staying in one place for a long time. In most cases, you must own a home for at least five years prior to selling to just break even due to the costs of selling.
- As a tenant, there is the possibility of living in an area in which you could not afford to buy.
- Moving out is easier for a tenant than a homeowner as there is no stress of finding someone to take over the lease or finding a buyer to purchase the property, since this is the homeowner or landlord’s responsibility.
Are you ready to take the plunge into the Real Estate market? Don’t do it alone. My mission is to help you achieve your life goals. Contact me today at 206-250-7291 or donkoonce@windermere.com.
Warmly,
Don
