Should I Continue to Rent or Should I Buy a Home?

Rent or Buy?

Sick of your apartment?  I bet!  Giraffe Realty is here to help!

If you’re looking at whether or not you want to continue renting your apartment, there are a number of factors to consider.  I can tell you with 100% certainty that it pays to own a home in Texas!  According to Forbes, in cities like Houston, Cypress, and Katy, Texas people are deciding to buy a home rather than to rent because it is more affordable.

 

Should I Continue Renting?

 

Let’s take a look at some of the key factors to consider:

Issue Rent Buy
Tax Savings When you rent, you don’t pay any property taxes directly. However, your rent is usually high enough for the landlord to pay those taxes. You have to pay property taxes on your home. However, when you own your home, there are a number of significant income tax benefits that will significantly decrease the amount you owe the IRS.
Monthly Costs Renting may be cheaper, by the month, but you are not earning any return on your dollar. In cities like Cypress, Houston, or Katy Texas: paying a mortgage, plus all of the ancillary costs, can actually be comparable to renting, when you factor in the tax benefit or your return on investment.
Return on Investment Renting gives you no return on investment. When your lease is up, you don’t own anything. You have paid tens of thousands of dollars, and you have nothing to show for it. Buying a home right is the key to financial security.  As time goes on, you own a greater and greater percentage of your home, creating more and more equity. When it’s time to sell, hopefully you will have enough equity in it to turn a substantial profit.
Length of Stay Renting gives you more flexibility in picking up and moving at will.  If you plan on living somewhere less than  three years, renting can be roughly the same as buying in terms of costs. If you plan on living somewhere more than three years, buying a home will almost always cost less than renting.
Increasing Costs Your landlord can raise your rent, usually on at least a yearly basis. The cost of buying a home will stay the same throughout the length of your fixed-rate mortgage.
Financial Flexibility When you rent, you pay what the landlord says you have to pay. When you buy a home, you can opt for various types of mortgages to suit your specific situation.  You decide what your budget is, and you stick to it!
Maintenance Your landlord is generally responsible for most repairs, and you are reliant upon your landlord for the repairs to be fixed. You are responsible for all repairs, and those repairs can be done by who you want, when you want, and how you want.  You also have the option to decorate your home the way you want.  If you want to paint the walls purple, do it!   No one will tell you otherwise.
Privacy A landlord can enter your living premises, provided they follow applicable laws, usually after giving 24 hours notice. You are also at the mercy of your neighbors’  lifestyle. No one can enter your living premises without a court order or your permission.  You are afforded a more private life.
Family Stability Renters move often.  When raising a family, renting does not provide a stable base for your family. For as long as you make your mortgage payments, your family can live in your home. There is pride in ownership that ripples throughout the entire family.

 

Here at Giraffe Realty, we pride ourselves on working closely with our first time home buyers.  It is our personal mission to effortlessly guide you through the process of making that first home purchase.  Please contact us if you would like to discuss your next move!