Should you Rent or Buy?

Blog Post Image
Real Estate

Should you Rent or Buy? What should you consider when deciding whether to rent or to buy? What is the difference between renting and buying a home?

There are many questions that come up when trying to make a major decision on whether to buy or to rent a home. It is a decision that affects your whole lifestyle as well as your financial well-being and goals. 

They say that real estate ownership is a good way to build equity and that it is a good financial decision. Renting also has the advantages of having lower responsibility and having the flexibility to move as needs change. 

The "American Dream" is to be a homeowner from the messages that the media and others attack us with. It is part of mindset that we have been grown up with. 

Renting:

Renting allows you to move whenever your lease term expires. This also means that if your landlord sells the property, you could have to move suddenly. Also, if you renew the lease to stay longer, it allows for the landlord to increase the rent payment. With renting, you aren't building any equity of your own in your monthly payments. Renting is good for people that might be moving every few years as they switch jobs to move up in their career. 

Owning a home:

Owning a home brings pride of ownership. It is stability and sense of accomplishment. There are benefits of tax deductions and a way to build equity. However, not all properties will bring you a good return on your investment. It is important to buy wisely. In real estate, they always say, "location, location, location". That is very true. A real estate agent should be knowledgeable about the area and what might be going into the vacant property on the corner, for example. It is important to know when to sell too. The real estate market fluctuates. In 2008, we saw housing prices bottom out. Many are just now recovering from where they were before the crash. Homeowners that bought when prices were low, made great returns on their investment. Those that bought at the high point, will do good eventually, but they will have to stay in their homes a lot longer for the market to recover. If you plan to stay in the same place for 5 years or more, that is usually an indicator that it is best to save up and buy a home than to rent. 

 

Please call me if you have any questions or would like more information on real estate in the Pinellas County / St. Petersburg, Florida area. 

 

Rupa Nunamaker

Coldwell Banker, St.Petersburg, FL

ruparealtor@rupaweb.com

mobile phone: text or call 727-430-2350

Facebook

Instagram

Website: rupaweb.com