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For every new client that asks me this question, my answer is always the same. And, even though you might think that, as a Realtor, my answer is always that the client should buy, it’s not! Nor do I always tell them that they should rent.

So the answer to “Should I rent a home or buy a home?” is ALWAYS “Well, that depends.”

As a Realtor, I strive to educate my clients on all of their options so that they can make a decision that is right for them and their family. Like I mentioned in a previous post, I don’t actually get to make very many decisions as a Realtor, usually just the order in which we see the houses. But I do make sure that my clients are armed with as much information as possible and I do guide them through the decision making process.

But back to the initial question- “Should I rent or buy a home?” Every single potential renter/buyer is unique, with their own set of needs, assets and liabilities that will determine whether they should rent or buy a home. Let’s check out some of factors that might affect your decision.

1. Rent payment v Mortgage payment

In today’s inflated rental market, the rent for a home is often as much if not more than the mortgage payment would be on the same home. After all, the owner/landlord is business to make money, so the renter is paying his mortgage payment, interest, and property taxes, not to mention his profit on the property.

2. Finances

The days of having to have 20% of the purchase price to put down on a house are all but over. There are many programs and mortgage loan products available to buyers now with 10%, 3.5%, and sometimes no money down. It all depends on your qualifications. We can decide if your finances would be better suited on renting or buying.

3. Property Maintenance

As a Renter, you may or may not be expected to cover some repairs and maintenance, depending on your lease. For the most part, the landlord would cover major repairs, like heater, plumbing, electrical, roof, etc. As a homeowner, every blown light bulb is yours to change, and the leaky roof is yours to repair.

4. Long Term Goals

How long you plan on living in an area is an important determinant in whether you should buy or rent. If you’re staying put, buying is most likely the best option, since you’ll be building equity in your own home with each mortgage payment. If you know you’re just passing through, renting might be the better option. There are of course exceptions to that rule, but that’s for another blog post.

Together, we’ll take a look at all these factors, and any others that might help you make the best decision. Ready to take the leap? Contact me any time!

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