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To Rent or to Own? What does the future hold?

By Anna Tolstoy

Real Estate Sales Representative with Coldwell Banker Residential Brokerage

May 19, 2011 04:44 PM

People are scared to buy a house these days. They ask themselves these questions:

What if market reaches even deeper and prices fall further down? My investment will be null.
What about all these districts with great schools - prices are too high for me to buy there, but I can get in if I rent ?
What if I just rent and know no worries? And wait for better times?

My recent observation, that several of my colleagues shared, is that rents are rising as well! They are expected to rise more, come fall and next year.

Which will make renting an easy - but costly - option.

I would recommend someone to rent if they are planning to stay in Boston area for a short while only, if their job might require them to move to a different state (or country), if they are overall not sure of their plans. But if one is going to settle in here in Boston area, one has to be prepared that rents will not get cheaper. A fixed mortgage will always be the same (and if you refinance, or prepay it might get smaller)

Thoughts?

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Lisa Bear (RE/MAX REALTY CENTER) Waukesha,MilwWI Real Estate 2628935555

Buyers Agent/Luxury/Lake/REO, listing package options - Oconomowoc, WI

OWN OWN OWN..... real estate is still a wise investment fro so many reasons!

May 19, 2011 04:45 PM

Chandler Real Estate Liz Harris, MBA

Liz Harris Realty - Chandler, AZ

#ChandlerRealEstateAgent

There will always be a segment of the population who doesn't want the responsibility of repairs and/or the added freedom of a short term commitment. So since the rental market will always be here so I say, "Buy investment properties, buy investment properties!"

May 19, 2011 04:47 PM

June Piper-Brandon

Coldwell Banker Realty - Columbia, MD

Creating Generational Wealth Through Homeownership

There has never been a better time to own your own home. Now that it's harder to get financing more people are renting and as there is a bigger demand for rentals the rents are going up. Why pay twice as much (in some cases) to rent a home when you can buy the same home for a payment that is half as much? It's a trade off, you get the tax deduction and lower payments for owning or pay more for what?

Scott Silverstone

William Raveis Real Estate - New Haven, CT

www.CTProperty.com, Connecticut Luxury & Waterfront Realty

It comes down to the numbers - customers need to be made aware of the costs of owning vs renting for their own situation. Sometimes renting makes sense, and often it is the only option.

May 19, 2011 04:51 PM

Anna Tolstoy

Coldwell Banker Residential Brokerage - Natick, MA

Lisa, yep - in the long run (the longer the run, so to speak)

Liz, that's a good point!

June, see, that's where there are issues at times - if only you have a down payment and can get a mortgage... Rent gets you into a better neighborhood easier.

Scott, that's an excellent point - the picture is often blurred by emotions, but a long hard look at numbers adds instant validity to all decisions.

May 20, 2011 02:48 PM

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Anna Tolstoy

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