Living: Renting vs. buying

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Real Estate Agent with CO-RE Group, LLC -Real estate sales and services ER100036445

Are you wrestling with the almost Shakespearean question: To rent or not to rent? ...well, or "To Buy or not to Buy"?

There are a lot of things that factor into your decision i.e. how long will you be staying in your home? Statistics show that if you stay at least 4 years then buying a home will make more financial sense.

Renting means more flexibility -you move in and move out when you want -provided that you have structured your lease in such a way that will allow for this. You have less upkeep in and around your home - a big plus.  On the down side, you are not building equity as you might when purchasing your home. Annual rent increase, could also outpace inflation. A lot of times, military personnel is plagued by hefty rent increases, incidently in the same amount as the increase of their housing allowance.

Buying on the other hand allows for tax breaks, potential tax free capital gain and the emotional satisfaction that you can do in your home and with your home as you please (in compliance with your HOA, of course). If you don't mind house maintenance and yard work and you can live with the fact, that things get a bit difficult should you have to relocate quickly then take a closer look at a home purchase.

60-75% of renters are still dreaming the American dream of owning their own home as the infographic below shows. Homeowners are more engaged in their communities,which is important for the stability of a neighborhood or even part of town.

 Top four reasons for home ownership according to the 2011 National Housing Survey:

  1. It means having a good place to raise children and provide a good education
  2. You have a physical structure where you and your family feel safe
  3. It allows you to have more space for your family
  4. It gives you control over what you do with your living space (renovations & updates)
 
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Ambassador
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Ed Silva
RE/MAX Professionals, CT 203-206-0754 - Waterbury, CT
Central CT Real Estate Broker Serving all equally

A homeowner brings stability and a sense of pride to a community, while a renter is not much different than someone that spends a few days in a hotel in someone elses's town. Their mindset is always one of not their areas and not their responsibility

Feb 12, 2012 12:17 PM #1
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Mimi Foster
FALCON PROPERTY SOLUTIONS - Colorado Springs, CO
Voted Colorado Springs Best Realtor

Very nice post, my friend.  And very nicely presented.  This is certainly an idea that we need to preserve.  *suggested*

Feb 12, 2012 03:04 PM #3
Rainer
189,450
Susanna Haynie
CO-RE Group, LLC -Real estate sales and services - Colorado Springs, CO
Colorado Springs Realtor GRI CNE MCNE ePro MRP

Thanks so much Mimi!

Feb 12, 2012 03:21 PM #4
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876,608
Janis Borgueta
Key Properties of the Hudson Valley - Newburgh, NY
LIC RE Salesperson

Home ownership is a great thing. Some of the population still doesn't get how affordable houses are right now. Still we do have those that need to rent. RIght now where i cam you can own cheaper than renting with NO benefits. Credit and documentation of a job have to be in place. I get renters than can put down six months rent, but can't qualify for a mortgage. Sad times.

Feb 12, 2012 04:51 PM #5
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Rainer
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Susanna Haynie

Colorado Springs Realtor GRI CNE MCNE ePro MRP
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