Posted 2 years 326 days ago ago by SuperUser Account 8 Comments
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.
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