Does buying or renting make more sense for you? Janice Roosevelt, Keller Williams Real Estate, PA & DE

By
Real Estate Agent with Keller Williams Brandywine Valley PARS273421 & De Lic.

If the two have you have hitched your dreams to one star, then buying a home rather   than renting could make sense, especially if you are living in southeastern Pennsylvania or northern Delaware.

Yes, mortgage rates are historically low, and yes, inventory is high, and if you plan to be around for another 5 years, then you could actually SAVE $$$.

Renting is really a short-term investment plan. Renting would be good if you plan to stay for 5 years or less.
Buying however; can mean a sense of financial security, as property, over time, appreciates. 

With a fixed mortgage rate, there are no worries that the landlord will increase the rent.

It can be a smart move if  you have a stable source of income, have good credit, and money to put down. If you’re handy, and have cash to spend on fixing a home up, there are plenty of short sales and REOs (bank-owned properties) .

 As with any property you do need to  consider property taxes, maintenance costs, insurance expenses, and homeowner association fees, if there is a home owners association. . The money spent in these expenses will never return to you. In most areas of Chester and Delaware counties, in Pennsylvania, right now, the tax assessed value pf properties can be appealed successfully, which means you could actually lower your property taxes in the future.

To weigh the pros  and cons of your situation, give me a call for a consulation. We’ll work through whether it makes sense for you to rent or to take advantage of this incredible real estate market.

 

jroosevelt@kw.com

Comments (6)

Patricia Feager, MBA, CRS, GRI,MRP
DFW FINE PROPERTIES - Flower Mound, TX
Selling Homes Changing Lives

Hi Janice,

This is good advise for a prospective buyer to consider. When I relocated I decided to rent an apartment first. However, it wasn't until after I moved out and bought my house a year later that I realized how much money I could have had, had I not rented. For example, I had to rent a storage unit to store most of my belongings that wouldn't fit in the small apartment. As time went on, I bought things specifically for that small apartment, like drapes and some furniture that I needed. Apartments are usually very small and the things I bought for the apartment couldn't be used when I bought my house.

Also, the apartment didn't have a garage and that was a huge inconvenience for me. By thinking I was saving money, it caused me to spend more money.

People need to weight both options and figure out the cost savings over time.

Janice, you provided a great post with well thought out information to prospective buyers or tenants.

Jan 03, 2012 07:38 PM
Keith Gilkey
Re/Max Chesapeake - Elkton, MD
410-920-7214, Re/Max Chesapeake

Janice, Very good post! There are so many opportunities for Buyers right now with great inventory and low interest rates it's time to buy!

Jan 03, 2012 11:50 PM
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

This month is a wonderful time for home buyers.  The selection is large, the prices are very attractive and the mortgage interest rates are the best ever.  It is a time of great opportunity.

Happy New Year!

A Longwood Christmas - Poinsettias IMG_2397

 

Photograph by Roy Kelley.  Canon PowerShot G11 camera.

 

Roy and Dolores Kelley Photographs

Jan 04, 2012 01:06 AM
Janice Roosevelt
Keller Williams Brandywine Valley - West Chester, PA
OICP ABR, ePRO,Ecobroker

Patrica, Wow! Couldn't ask for a better testimonial than your expereince to demonstrate that it is more cost effective to buy rather than rent.

Jan 04, 2012 04:07 AM
Janice Roosevelt
Keller Williams Brandywine Valley - West Chester, PA
OICP ABR, ePRO,Ecobroker

Ketih, Thank you for stopping by and for your comments!

Jan 04, 2012 04:08 AM
Janice Roosevelt
Keller Williams Brandywine Valley - West Chester, PA
OICP ABR, ePRO,Ecobroker

Roy, well put. I love that , the "time of opportunity!"

Jan 04, 2012 04:08 AM