Why I always buy instead of lease.

By
Real Estate Broker/Owner with Richard Weisser Realty

Why I always buy instead of lease.There are numbers crunchers out there that say it is more cost effective to lease than to buy a primary real estate residence.

What surprises me about these calculations is that they rarely take into consideration two major factors:

First, that rent can be raised by ANY amount upon expiration of the lease.

Second, there is no guarantee that a lease will be renewed at any price.

For me personally, I do not like uncertainty. I buy because I want to fix my expenses and I don’t want to have to move again until I choose to do so.

 

It’s a personal choice, but one that I have never regretted.

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Ambassador
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Richard Iarossi
Coldwell Banker Residential Brokerage - Crofton, MD
Crofton MD Real Estate, Annapolis MD Real Estate

Richard,

The fixed rate mortgage is a very attractive financial instrument. Now, if I couldl only do something about fixing those taxes.

Rich

Dec 02, 2013 01:19 PM #1
Rainmaker
889,318
Sussie Sutton
UTR Texas Realtors - Pearland, TX
UTR TEXAS Realtors - Rep for buyers and sellers.

I too like to know what FIXED amount will be coming out of my account.  A fixed home loan payment for years will fix that issue.

Dec 02, 2013 01:34 PM #2
Rainmaker
686,609
Hella Mitschke Rothwell
(831) 626-4000 - Honolulu, HI
Hawaii & California Real Estate Broker

Richard: There are always those who don't want the responsibilities that go with owning a home. It's probably not right for everyone and they would get into financial trouble.

Dec 02, 2013 01:47 PM #3
Rainmaker
1,427,313
Kat Palmiotti
Grand Lux Realty, Monroe NY, 914-419-0270, kat@thehousekat.com - Monroe, NY
The House Kat

There are definitely those who would do better with a purchase and those who benefit from a lease. 

I'm with you - I like knowing that the landlord won't raise the rent or kick me out or sell the house on me. 

 

Dec 02, 2013 07:56 PM #4
Rainmaker
4,797,014
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

For me, the biggest benefit of owning, rather than leasing is the feeling of personal satisfaction of possession.

Dec 02, 2013 08:24 PM #5
Rainer
355,882
Tom White
Franklin Homes Realty LLC (615) 495-0752 or www.FranklinHomesRealty.com - Franklin, TN
Franklin Homes Realty LLC, Franklin TN

Richard, I'm a structured sort of guy. I like order, even though I try to stretch myself to be a little more free thinking. I like the certainty of my house payment. The thought of getting bounced out of my residence is not working for me!

Dec 03, 2013 12:39 AM #6
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Tammie White, Broker
Franklin Homes Realty LLC - Franklin, TN
Franklin TN Homes for Sale

I'm all about making the best financial decisions possible and those decisions don't include leasing anything.

Dec 03, 2013 01:34 AM #7
Rainmaker
3,980,931
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

There are a lot of expenses owning a home, but the same ones are there on a rental, and who do you thing pays for that.

Dec 03, 2013 07:34 AM #8
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Richard Weisser Retired Real Estate Professional
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