Does it Cost More Or Less To Own Vs Rent?

Generally speaking, with interest rates as low as they currently are monthly rent payments are equal to or greater than the monthly mortgage payment to buy a comparable place.  For many the decision to rent comes from looking at housing as shelter vs a long term investment.    

Historically rental rates increase from year to year, vs a mortgage that can be locked in for 7, 10, 15 or 30 years.  So, long term buying will give you greater control over your housing costs like a virtual "Rent Control."   

The bottom Line, in today's economy, is that if you can qualify for a loan, and have even a low amount of savings for down payment and closing costs, it probably makes more sense to buy vs. rent just based solely on cost!

Plus, typically real estate will appreciate in value. And, even if the market doesn't increase in value in a worst case scenario, there can be substantial income tax benefits to owning vs renting which means the government will allow you to take part of the dollars you would have otherwise paid in income tax to be used to pay your housing payment and home purchase.

How Long Do You See Yourself Living In The Next Place

If you're planning to move within  2-3 years, you might not want to incur the costs of buying a home realizing that the home would have to increase in value 2%-3% per year for the purchase price down the road just to cover your selling costs. However, if you intend to stick around for 3 years or longer, then buying usually makes sense.

At the same time, if you are open to leasing out the property, vs just selling it in 2-3 years, then it may still make sense to buy now vs lease. If you view this as a real option, and the posibility of relocation out of the city is also a real possibilty then be sure to talk with Mitch about the best property to purchase now that can also be an ideal rental property if that need becomes a reality.

Does it Cost More Or Less To Own Vs Rent?

Generally speaking, with interest rates as low as they currently are monthly rent payments are equal to or greater than the monthly mortgage payment to buy a comparable place.  For many the decision to rent comes from looking at housing as shelter vs a long term investment.    

Historically rental rates increase from year to year, vs a mortgage that can be locked in for 7, 10, 15 or 30 years.  So, long term buying will give you greater control over your housing costs like a virtual "Rent Control."   

The bottom Line, in today's economy, is that if you can qualify for a loan, and have even a low amount of savings for down payment and closing costs, it probably makes more sense to buy vs. rent just based solely on cost!

Plus, typically real estate will appreciate in value. And, even if the market doesn't increase in value in a worst case scenario, there can be substantial income tax benefits to owning vs renting which means the government will allow you to take part of the dollars you would have otherwise paid in income tax to be used to pay your housing payment and home purchase.

How Long Do You See Yourself Living In The Next Place

If you're planning to move within  2-3 years, you might not want to incur the costs of buying a home realizing that the home would have to increase in value 2%-3% per year for the purchase price down the road just to cover your selling costs. However, if you intend to stick around for 3 years or longer, then buying usually makes sense.

At the same time, if you are open to leasing out the property, vs just selling it in 2-3 years, then it may still make sense to buy now vs lease. If you view this as a real option, and the posibility of relocation out of the city is also a real possibilty then be sure to talk with Mitch about the best property to purchase now that can also be an ideal rental property if that need becomes a reality.