Is it better to buy or rent?
Often times people ask themselves, is it better to buy or rent? When you’re first starting out, almost everyone has to rent where they live, either on their own or with roommates. It usually takes a long time to build enough credit history and save for a down payment on a home mortgage. Let’s assume you’re already at the stage of your life where a bank has given you a pre-approval letter for a home purchase, and you’re having to decide whether to buy or a rent.
Pros of Renting
Renting usually leaves you with zero responsibility of repairs made to the home. I’ve even known people to call a landlord when a light bulb goes out. Some apartment complexes actually change light bulbs free of charge! Renting also gives you the flexibility of not being tied into a property for long periods of time past a normal 12 month lease period.
Cons of Renting
Renting has it’s drawbacks, too. When you rent you never own the property you live in. You will be subject to rate hikes at the end of your lease period, you may have to move if a landlord won’t continue a lease, and the landlord could even sell your place out from under you with you left wondering whether or not the new landlord will honor your lease. When you rent you’re not able to take advantage of the mortgage interest tax credit available to home owners. This is a huge tax savings that all renters miss out on. Renting also prevents you from making your own customizations to the property, such as installing a deck, landscaping, painting, or installing custom fixtures.
Pros of Buying
Most people would love to own their own home! The house is yours! You can do whatever you want with it (zoning and HOA rules aside). When you buy a home you have the freedom that every homeowner gets to experience. You can sell it in the future, you can even sub lease it to someone else to help with those mortgage payments. In addition, you get to take advantage of tax savings on mortgage interest payments offered to home owners that are not available to those who rent. Every penny you pay in interest on your home mortgage is tax deductible. Think of the future! Real estate is guaranteed to appreciate at least 3% year after year. After a housing slump like we just experienced this may seem unrealistic, but any financial advisor will tell you that buying real estate is usually a great investment.
Cons of Buying
One major issue for home buyers is the cost of maintenance and level of commitment owning a home involves.
One major issue for home buyers is the cost of maintenance and level of commitment owning a home involves. I’d like to believe that there are homes that will never have issues, but they don’t exist! All homes need maintenance of some kind, whether it’s mowing the yard, fixing plumbing leaks, installing new roofing, or any other routine maintenance procedure that may need to be preformed.
Well, is it better to buy or rent?
Is it better to buy or rent? In my opinion, everyone should get to experience the joy of owning your own home. The only situation I can see where renting is truly better is in an area with unaffordable home values, or if you’re in a situation that prevents you from getting financing. If you’re looking to buy in Asheville, NC I’d be happy to do a property search for you. Click here or give me a call and I’d be happy to help. If you’re not in Western North Carolina and you’re interested in buying property, I have a vast network of qualified real estate agents all over the country that I can introduce you to. Give me a call!