Three things to consider when deciding whether to buy or rent.

Today I am pleased to be joined by a great realtor from my team, Gary Raeker. We’re addressing the question, “When does it make sense to buy?” Right now, a lot of people seem stuck; home prices are increasing, but so is rent. Today we will discuss three factors to consider before buying a property:

1. Your finances. For most people, buying a home is the largest purchase they’ll make in their lifetimes. It’s a big cost upfront, but once you buy, you can build equity, increase your net worth, take advantage of tax breaks, and more. Plus, you’ll have a defined monthly payment that won’t rise with the cost of living as rent does.

“Real estate transactions are always emotional.”

2. Market conditions. Depending on interest rates and home prices, your monthly mortgage could increase or decrease. Interest rates may be going up, but they are still historically low. If you haven’t checked, you’ll probably be surprised by how much house you can currently afford. 

3. Your personal situation. A real estate transaction is always a financial decision, but it’s an emotional one too. Consider how long you want to live in your next home. Most people stay in their houses for five to 10 years, so if you want to move sooner, you may want to rent. However, renters always run the risk of their landlord selling the property. In this instance, you may have to move unexpectedly. 

If you want more information, please call or email us. We can set up a consultation where we’ll look at your situation and decide what makes sense for you. We hope to hear from you soon.