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Rent vs. Buy, Why??? Peek into their heart AND their credit report.

By
Real Estate Agent with Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate 303829;0225082372

RENT vs. BUY??

It's a lot more complicated than a simple financial comparison.

Think about the RENT WHAT, WHY RENT, RENT WHERE, and so much more.

My experience is that the final costs of home ownership is little known by prospective home buyers.  They have no experience with a leaking roof, a refrigerator that suddenly isn't cold, water penetration in the basement, etc.

YET THEY BUY.  Why???

1.  The love of HOME is, IMO, the #1 motivator for first time home buyers.  Memories of the family home is a strong motivator. 

2.  Transportation alternatives.  With a very tight rental market, many families simply cannot find suitable rentals within an easy commute of their jobs.

3.  Public schools.  Don't underestimate the importance of school selection on the family. 

4.  The culture of home ownership.  Goodness, TV shows from the 1950s generally showed the family in a HOME, not a rental.  Even Desi and Lucy eventually moved to the country into a HOME.  Movies featured home buying or building scenarios. 

5.  Rents are higher than at any time in recent memory and the percentage of income to rental costs drives many folks to consider buying.

6.  Low interest rates are critical to the dynamics of Rent vs. Buy.  Cross your fingers.

HOME OWNERSHIP is no different from owning vs. renting almost anything.  Folks want to OWN things in their life.  Shelter is essential and folks what to CONTROL where, why, how they live.

For help finding your dream home, contact Lenn Harley, 800-711-7988.

WE CAN HELP!!

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Comments (12)

Cathy Criado
Criado Realty - San Antonio, TX
Making Real Estate Profitable

Lenn, I've never thought of buying a home as an investment until I got into real estate. Now I hear it all the time, but like you said, its more like a lifestyle. With renting, there is constant moving. With owning, you have control over the moving so you could have a more stable life. 

As a military brat I moved often, but it was to a community that was military so making new friends was not that much of a challenge. When you are not military, its a totally different sitution. Just another reason to own instead of rent.

Happy Easter.

Apr 06, 2012 10:33 PM
Wayne Zuhl
Remax First Realty II - Cranford, NJ
The Last Name You'll Ever Need in Real Estate

This is such a great  post!  Renters should also know that by paying a mortgage they're (in most cases) creating a forced savings account for themselves.  It's better to pay that money to yourself than to your landlord!

 

Apr 06, 2012 10:41 PM
Sonja Patterson
Keller Williams - BV - College Station, TX
Texas Monthly 5-Star Realtor Recipient for the Hou

I esp. like you comment on #3.  Even if you don't have children and don't plan on having children...buying a home with GREAT schools will help immensely when it comes time to sell.

Apr 06, 2012 10:49 PM
Roger D. Mucci
Shaken...with a Twist 216.633.2092 - Euclid, OH
Lets shake things up at your home today!

Having been in the multi-family industry for years, one of the things that I discovered about many management companies that own multiple buildings is the fact that they don't maintain them properly.  It's sad for renters who pay out all of that money monthly and can't get things done.  The management companies have a captive audience in their eyes, but truth be known, in this area, vacancies are up.  Excellent post Lenn.

Apr 06, 2012 10:50 PM
Brenda Mullen
RE/MAX Associates - San Antonio, TX
Your San Antonio TX Real Estate Agent!!

I have always thought that if it made sense, folks should buy their homes instead of rent them..renting only makes sense if...you aren't going to be in the area long (such as military), you don't have the credit or money to yet own a home.  

Other than that, if you have the ability, with these rates and inventory...buying a home just makes..sense.  

Apr 07, 2012 12:36 AM
Carie Shapiro
North Shore Suburbs & Chicago Real Estate - Evanston, IL

As you say, it is way more complicated than a financial comparison.  And, you're absolutely right about the current rental market.  So, finding a suitable rental is not necessarily that easy anymore!

Apr 07, 2012 02:18 AM
San Antonio Texas New Homes for Sale
www.sanantoniotexasnewhomesforsale.com - San Antonio, TX
Berkshire Hathaway HomeServices Hill Country

Lenn....Great Outline !  Getting such great information out to people so they can make an informed decision !!!

 Thank You

 

 

Suggested

Apr 07, 2012 02:20 AM
Juli Vosmik
Dominion Fine Properties - Scottsdale, AZ
Scottsdale/Cave Creek, AZ real estate 480-710-0739

Lenn, some great things to think about when deciding whether to buy or own a home.  There really is a lot to consider - more than just "can I afford it."  

Apr 07, 2012 02:56 AM
Maria Morton
Platinum Realty - Kansas City, MO
Kansas City Real Estate 816-560-3758

Lenn, many renters also want to own a home so that they can paint whatever color they choose on the walls, put in raised garden beds, and build their own gazebo in the back garden. Having the freedom to arrange one's own environment is priceless.

Apr 07, 2012 03:03 AM
Jay Markanich
Jay Markanich Real Estate Inspections, LLC - Bristow, VA
Home Inspector - servicing all Northern Virginia

Despite the current "regime" touting renting as the new American dream (gimme a break), home ownership is truly the goal.  Period.

Apr 07, 2012 07:35 PM
Kathy Sheehan
Bay Equity, LLC 770-634-4021 - Atlanta, GA
Senior Loan Officer

Not everyone is able to qualify for a mortgage now, the question becomes are they working to change that or just rolling along.

Apr 07, 2012 11:02 PM
Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

Cathy.  Military families are the strongest when faced with relocation.  I've admired that.

Wayne.  As long as there is some appreciation, you are quite correct.

Sonja.  Indeed.  Many folks without children understand the market value of school districts.

Roger.  I've seen both sides.  Management that doesn't maintain buildings well and tenants who pay no attention to the lease requirements.

Brenda.  Agreed.  Also, that house becomes a HOME.

Carie.  Right.  I have a friend who wants to rent something for her daughter and there is nothing in their entire town.

Robert.  The key word is informed.

Juli.  That's what I always think when folks buy FHA with no reserves.

Maria.  BINGO!!

Jay.  100% correct. We are not "subjects" with no ownership stake in the society.

Kathy.  Old habits are, for some, hard to break.

 

Apr 08, 2012 04:26 AM