Should I Rent or Buy??

In the last few months, I have had several people ask my opinion on renting vs. buying. Since my husband and I are experiencing a similar quandary, I've done a ton of research and have had a lot of time to think about this question. There are several factors that should be considered when deciding whether you should rent or buy. Let’s address this before we start - I can’t tell you what you need to do, but I can offer you advice based on personal experience and research. Basically, whether you should rent or buy is based on your own personal situation.

In all my research from reading articles online to asking other real estate professionals, here is my list of things to consider when you're debating on whether to buy or rent:

Why Buy?

Building Equity – Who wouldn’t want to ready-made savings plan? Rent is money you will never see again, but equity builds up over time.

Tax Incentives – Get ‘em while they last!

Home Sweet Home – Almost everyone wants to have a place they can truly call their own. Purchasing a home is something that many consider to be the most fulfilling and satisfying purchases of their life.

         

 Why Rent?

Flexibility – Other than lease-termination or other miscellaneous fees, you can pick up and move whenever you want with little or no strings attached.

         

Small or No Maintenance Fees – If something is there is a maintenance issue, your landlord will fix it…most of the time.

Why do you want to buy?

This is probably one of the most important questions you need to ask yourself, when considering whether to rent or buy. If you think that you absolutely NEED to buy a house, you might want to reconsider your motives. I have listed a few great reasons to purchase a house including tax incentives, building equity, and establishing a home for your family. If you’re buying to post the infamous “Officially a homeowner” Facebook post (complete with a picture of keys and a SOLD sign), or you're buying in order to keep up with your friends or family…you might not be ready to own a home. Take a deep breath, think about your options, and don’t rush into this major purchase. Buying a home means having a mortgage, paying more taxes, cost of repairs, more responsibilities, and the list goes on, and on…

Length of Time

How long do you want to live in the location you are currently? If you only want to stay in your house for only a few years, it might be smarter to rent. It costs money to buy and sell. (I know you think I’m crazy for saying this, but you’d be surprised how many people don’t understand this concept!) When you get ready to move and you've purchased a house, you'll have to go through the process of selling your house. Depending on how fast you need to move, the selling process can take longer than expected. Selling your home can take weeks or months and will cost you money. In short, renting offers you more flexibility than owning. If you're set on buying but only want to stay in the house for a few years, talk to your lender. They may offer some loan programs that can fit your needs and personal situation. 

There are several “Rent vs. Buying” calculators on the internet. Search Google and you can find several different versions. These tools can help you determine the actual costs of renting compared to buying.

I hope this list of things to consider has helped you consider the pros and cons of both buying and renting. If you would like to see what is available in the Kilgore/East Texas area, I would be glad to help you find a rental or a home to purchase. Give me a call or text, and I would LOVE to help you. Happy house hunting!

Sincerely,

Jessica Holmes

Realtor ®

Mobbs Real Estate Group