Jun
27
2016

Should I buy or Rent?

Posted 3 years 335 days ago ago by SuperUser Account

At one time or another, we’ve all asked the question, should I buy or should I rent, and fortunately or unfortunately depending how you look at it, there is no one size fits all answer.

This question is a bit loaded in that it really is multiple questions tied in one, which are:

1. Emotionally do I want to buy or rent?
2. Financially is it in my best interest to buy or rent?

As the emotional component of any subject requires careful physiological investigation, I’ll leave it for another time and focus on “Financially is it in my best interest to buy or rent?”. Yes, in this case I’m taking the path of least resistance. But before I move on, I want to encourage all realtors out there to make sure that you understand your client’s emotional needs as it relates to buying and selling, you’ll find that in most cases that the emotional needs and or desires will trump the logical ones, and they will serve you well if you understand what they are.

As of the writing of this post, in my opinion if you are financially able, it makes more sense to buy vs. renting. You’d be hard pressed to find a 3 bedroom, 2 bath house for rent for $1,500.00 or less in my local area. When using a buy vs. rent calculator such as the one located here at smartasset https://smartasset.com/mortgage/rent-vs-buy#9Aitm7x5Fi you’d see that it would only take 4 short years for the purchase of a $250,000 house with 5% down to make more financial sense to buy than to rent taking into consideration today’s rates and other economic factors.

Lastly and personally, the biggest advantage of owning vs. renting is the fact that once your loan term has been completed if financed, your monthly obligation to maintain your home is significantly reduced whereas your rental cost will not just stay the same, it will increase and have a damaging affect on your fixed income, or worst yet, require you to continue working past your retirement age simply to pay for your cost of living.



“Together, let’s make Pasco County great!”





Recent Articles
Strategic Default 4 years 150 days ago
Mortgage Help Extended! 4 years 144 days ago
Goals, Goals, Goals, and more Goals 4 years 142 days ago
I'm still here.... 4 years 121 days ago
Needs vs. Wants 4 years 11 days ago
Is your personal residence an Asset or a Liability? 4 years 8 days ago
Interest Rates 3 years 355 days ago
Should I buy or Rent? 3 years 335 days ago
Subscribe
Local Real Estate News

Mortgage Rates Hit Record Low – Third Time this Year

Thu, 28 May 20 14:05:14 +0500

At 3.15%, the median 30-year, fixed-rate mortgage set another record. It’s down from last week’s 3.24% and the lowest since Freddie Mac started tracking in 1971.

‘Clean Criminal Background’ in Ads? Expect to Be Sued

Thu, 28 May 20 11:05:56 +0500

Lawsuits cost a ton of money even if you prevail, and aggressive lawyers are filing lawsuits against property managers and landlords that ban all rental candidates with a criminal history. It’s not strictly illegal, but a HUD statement says it likely violates the Fair Housing Act.

Dear Anne: Don’t Use an Offer to Increase Your Bottom Line

Thu, 28 May 20 11:05:28 +0500

Realtor A’s listing excited Realtor B – just what his clients want. But after Realtor B scheduled a showing, he said the commission in the MLS wasn’t high enough. After failing to convince Realtor A, he then included a higher commission in the contract. That’s wrong – right?

Violations Increase During Stay at Home Order

Thu, 28 May 20 11:05:26 +0500

Noting an “increase in violations and tempers” during the COVID-19 pandemic, a condo board wants to boost its enforcement powers and fine unit owners who break the rules. But details count. Any new enforcement process might create more problems than it solves.

Fair Housing Act: Words Matter in Advertisements

Thu, 28 May 20 11:05:07 +0500

It’s vital to review all advertisements, MLS entries and public-facing messages to make sure they comply with the Fair Housing Act and related laws that exist at all levels – local, state and federal. Realtors have been sued over accidental mistakes in the past.

Contact

 

Cecilio (Tony) Thomas

Future Home Realty

13029 W. Linebaugh Ave

Suite 101 Tampa, FL. 33626

727.207.2978

cecilio.thomas@IsItTime2Sell.com

"Your neighborhood Realtor..."