11 Jul Ask the Experts: Buying vs Renting
We asked the experts (our agents) the age old question should you buy or should you rent? Read their responses below to help educate you on your housing options. Selling your home? Looking for a new home? Contact one of our agents to assist with all your real estate needs.
Adam Kruse I always say we like to help people make smart decisions in real estate. That doesnt always mean to buy. Sometimes the persons situation, or the rental opportunity, makes renting a good option. But its amazing to me that people think renting is cheaper, because typically I am buying a building, taking out a mortgage, then renting it out for higher than my mortgage is. In most cases, I am looking to make $400.00 a month or more per unit over what all of my expenses are. Also, people think that renting gives you more flexibility, which I think is an odd concept too, because when you rent, you sign a contract to stay there. When you buy, the world is your oyster. If you want to move, you can rent it out to someone else, or you can sell it. Just my 2 cents.
Amy Gordon I would say the pro of renting vs. purchasing is that you don’t have to pay for repairs if something were to break. Also, renting is a good option if you are not quite sure how long you are going to stay in the area for. However, purchasing is definitely the way to go if you would like to earn equity rather than throw money away on rent. Another pro to purchasing over renting is you will usually will pay less on a mortgage payment rather than you would on a rent payment.
Darren Hoefgen If you can’t comfortably make your mortgage payment and have reserves for surprise life expenses – home or otherwise – rent until you can. I’ve seen many first time homebuyers stretch to buy then they had no money and then they got behind and lost the house, shift of hours at work, accident, car repair, medical bills, etc.
Jamie Speckhard Rent so my buyers have less competition ???? I think there’s a misconception that it’s cheaper to rent and that’s not always the case. But I agree with Amy that there is some comfort in not having the stress of repairs. I also think a lot of people think they can’t get a loan. But there are so many options out there for lower income or not so great credit.
Kori Hetzel Renting is a great option for someone new to a city as it is low commitment. Renters are able to get a feel for the new city before they decide where to put down roots.
There are pros and cons to both renting and buying. When you buy a property, you are putting your money towards an investment that could be profitable for you in the future, while renters aren’t really putting their money towards anything. But, as a renter, if your furnace breaks or you suddenly need a new roof, it is great to be able to call your landlord and leave those costly repairs for them to handle!