Should you buy or rent?

In today’s complicated housing market, many people consult a realtor to help them determine whether they should buy a house or continue renting. The pros and cons largely depend upon the circumstances of the potential buyer or renter.
Since very few individuals are able to pay the total sale price of a home, most home purchases involve putting down a certain amount of money as a down payment and acquiring a loan for the balance. If an individual does not have a sufficient amount of money for a down payment or is unable to qualify for a loan because of bad credit history or any one of a variety of other reasons, renting may be the only option.

If, however, an individual does have available funds for a down payment and can qualify for a loan, there are other considerations.

Here are some of the many reasons people choose to buy a home. There is a certain amount of pride and security in being a home owner. People with children like to settle into a neighborhood or a school district, put down roots, and build a life in a community. If you own your own home, you are not at the mercy of a landlord who suddenly decides to evict you or to sell the property so that you have to move. When you own your own home, you can decorate and remodel your own space and your own yard as you please, and any investment you make in changes to your living space accrue to you, not to your landlord. Home ownership is an investment, since you build up equity in the home as you pay your monthly payments. You are not subject to fluctuations in the rental or housing market, particularly with a fixed rate mortgage. And certainly not least in consideration is the fact that home owners receive tax advantages greater than renters do.

There are reasons to rent, of course. Buying a home is a major commitment of funds into a long-term investment. Many people interested in making money feel that other investments can give them higher or quicker returns than the appreciation of value of a home (however, it is important in this consideration to remember the benefits of those tax deductions to the home owner). Some people like to move frequently and easily, or they know that their job (or the loss of a job) may require them to move; renting allows more relative flexibility. And finally, some people don’t like to be bothered with maintenance problems; when you rent, the landlord bears the cost and effort of attending to broken pipes or whatever else can and does go wrong in a living space.

A good realtor can help you sort through these questions, evaluate the housing market in your area, show you homes suited to your needs, an inform you about costs of taxes, utilities, municipal services, and other things that might affect your decision whether to buy or rent.

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