RENT VS BUY
Most renewals if not all usually increase which means you have to pay more each month just to stay there. In some cases, you can't afford it but on the other hand...the cost to move is just as expensive. This problem is never going to go away. As long as you are renting you are paying for someone else investment so essentially you are helping them make money. That's crazy...especially when you could be helping yourself.
Buying a home can be a very solid investment. This being said, renting can also be a better option for some, depending on the circumstances. The current interest rates are incredible. Since the interest rates are so low, it actually can be cheaper to pay a mortgage right now than paying rent.
There are questions that you should ask yourself before deciding to buy a home. One of the most important things to consider is the length you plan on staying in a home if you were to purchase. If the answer is only a few years, it’s likely the better decision is to continue renting.
CONSIDER YOUR OPTIONS
CONSIDER YOUR FINANCES
Begin by calculating the monthly costs for each scenario, including mortgages, rent, taxes, insurance, fees, potential maintenance, and other expenses. The answer could vary greatly depending on the conditions in the market, location, and type of housing. A more competitive real estate market could mean higher prices. A less competitive market could mean dropping values. It’s also not as simple as comparing a monthly mortgage payment to a monthly rent payment.
OTHER FACTORS TO CONSIDER
There are questions that you should ask yourself before deciding to buy a home. One of the most important things to consider is the length you plan on staying in a home if you were to purchase. If the answer is only a few years, it’s likely the better decision is to continue renting.
BUY VS RENT: The price of the monthly payment will be the start of a comparison to rent.
DOWN PAYMENT: A larger down payment will mean smaller monthly payments.
LENGTH OF STAY: Staying in the home longer will spread costs over a longer period of time.
EMPLOYMENT: If unstable, it's best to add to a safety net than invest in a home.
CREDIT RATING: A higher credit rating will mean a less expensive mortgage.
CLOSING COSTS: These can account for 3-5% of the purchase price of a home.
TAXES: Property taxes will depend on the local laws, but could be another large expense.
MAINTENANCE: Depending on the age and size of the home.
INSURANCE: Either the home owner's or renter’s insurance protects personal belongings.
HOA DUES: Can sometimes cost as much as a mortgage payment.
STRESS: Repairs are stressful but building equity for your future makes it not so bad.
LOCATION: Depending on the location, it may cost less to either rent or buy.
RENTING PROS
• Flexibility to move
• Potential lower monthly costs
• No property taxes
• Low maintenance
• Less stress
• Easier with poor credit
• Low initial investment
• Fixed monthly costs
RENTING CONS
• Limited options
• No asset at the end of a lease
• Unable to customize
• No equity
• No tax deduction
• No control over rent increases
BUYING PROS
• Potential profit upon sale
• Mortgage interest is tax-deductible
• Can borrow from equity when necessary
• Invest for retirement
• More stable community
• Customization
• Mortgage interest may be tax-deductible
BUYING CONS
• Limited flexibility to move quickly
• More stress
• Responsible for all maintenance
• Property Taxes
• Down payment required
• Possible loss to declining homes values
• Possible short sale or foreclosure
RENT | MANAGE
RENT YOUR HOME
Sometimes it's smart to rent while you prepare to buy. You should always have a plan. Setting realistic goals makes the process easier, faster and more affordable. Find out how you can optimize your rental income while protecting your assets. Our simple, stress-free Property Management solutions offer unmatched support when it comes to renting out your home. I will help you.
• Determine your marketing strategy
• Create a budget for both operations and capital improvements
• Establish the fair rental market value of your property
• Show your rental(s) to obtain prospective tenants
• Acquire the designated deposit
• Verify employment and landlord history
• Perform credit check(s) for prospective tenants
• Review all processed applications and determine the acceptability
• Prepared lease and paperwork for signature by your tenant(s)
MANAGE YOUR HOME
Serving as a landlord for your rental properties can be difficult or, if you live at a distance, impossible. Weichert's property management group provides a comprehensive program with a single point of contact to take that burden from you.
• Act as a point of contact for your tenant(s) on all matters
• Collect monthly rental payments
• Make all authorized disbursements on your behalf
• Submit a monthly computerized statement to you
• Complete an end-of-year form 1099 for federal income taxes
• 24-hour accessibility for emergency services
• Arrange for appropriate repairs as authorized by you
• Conduct a condition inspection after a tenant moves out
• Remind tenants of their responsibilities, where appropriate cleaning gutters, check smoke detectors, take precautions to avoid frozen pipes, etc)
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