To Buy or Rent a Home: That is the question.
May 8th, 2009 | 
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To Buy or Rent a Home: that is the question. As a mortgage professionals, one of the biggest questions that friends and family always ask me is should they buy or rent. Well, frankly, that depends on YOUR current situation. There are advantages and disadvantages and I think you have to weigh them out and see what fits your current needs.
I guess the first question that you have to ask yourself would be if you are grounded enough to buy a house.What do I mean by that you ask? Well, after 8 years in the mortgage industry and 20 years in the financial industry, I have seen people attempt to buy things on credit and not have a lick of stability. Their job is shaky at best and the income is unstable as well. These are just a few of these issues that present themselves immediately. Once you get past that point, you have to decide if you are ready to take the next step in obtaining your financial freedom. Home ownership is a privilege and not a necessity.Too many people look at it like it should be basically given to them.
When you figure those two issues out, it is then time to determine if you want to put money into something that you can call your own or if you want to throw it down the toilet. Paying rent is sometimes the only path that one has to take and yet they still never do anything to change that fact. If buying a home is what you want to do then today’s market is the time to do it. In saying that, today’s market is not a short time investment. So, if you are going to buy, it has to be for the long haul. Many years ago when we were all kids growing up, our parents would live in a home from marriage to death. Children, grandchildren, and even for some great-grandchildren would walk through the halls of that home. There would be a many a family reunion that would come back to that very place. So, make sure that you can live 
there for some time. Look at the property as a long term investment and make sure that for each dollar that you sink into it, you put that away. No, mind you, I am not referring to mortgage payments or regular reoccurring bills, but to upgrades and repairs.
The last thing about buying that I would tell you is to find yourself a Realtor, loan officer, and home inspector that you can trust. If you can not find one on your own, then swing by Positive Real Estate Professionals and ask one of the members there if they can refer one to you.
Now, lets look at the advantages of renting: no property taxes, no upkeep, no replacing failed appliances in most cases.
Disadvantages: You can never own it. You have to have permission to change even the smallest thing. No tax write offs for the upkeep, payments, or anything else that you spend on it. And the last is the fear of it being sold from under you.
Which case is right for you?
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Hopefully most of the folks that have never owned a home realize the $8000 tax credit is also a huge benefit right now. Great post!
Bonnie’s last blog post..Atlanta home inspector shares common electrical panel home inspection issue
Bonnie, I could not agree more.
I think you hit on some of the key points that a renter and/or prospective buyer should consider before buying. It is important to weigh the cost vs. benefit of home ownership. It should also be noted that our thinking around this whole subject should be framed in terms of responsibility rather than dream; i.e. the responsibility of home ownership rather than the dream of home ownership.
Rich Dansereau’s last blog post..Eat Me!
Rich, that is a great point that you make there. Thanks for adding value to this article.
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