In today’s real estate market, many potential first time buyers are trying to decide if now is the time to buy. In many cases, now may be the perfect time for you to buy. In other cases, it may be better to continue renting. I have outlined below some of the advantages of Buying vs. Renting. Should you have any questions, please don’t hesitate to contact me.
Advantages of Buying
1) Tax Breaks: Assuming that you are in the 28% tax bracket, you can comfortably spend about 1/3 more than the amount you are comfortable paying for rent now.
2) Price Gains / Increase Your Equity: a. Between 2005 – 2008 the Williamsburg/VA Beach Market saw annual appreciation of 14.36% for single family homes b. Between 1978 – 2008 the Williamsburg/ VA Beach Market saw annual appreciation of 5.55% for single family homes
3) Equity / Savings
a. Rent is money that you will never see again! Building Equity is a ready made savings plan.
4) Freedom
a. This is your house. Barring any HOA rules, you can decorate the way you want to!
5) Stability
a. You can stay in the same house giving you the chance to form lasting friendships, get to know your neighbors, and participate in community activities.
6) Predictability
a. With a fixed rate loan, your principal and interest NEVER go up. However, when you are renting your rent can go up every year.
Advantages of Renting
1) Easy to move.
2) Little to no maintenance required.
The decision to buy or rent is a complicated one. If you are considering a move, please don’t hesitate to contact me. I would be happy to send you a copy of my “Home Buyer’s Guide”. In addition, I can email you a list of homes for sale in your price range.
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