Only you can decide when to rent or own a home.
BENEFITS OF HOMEOWNERSHIP
*Source: 2012 Social Benefits of Homeownership and Stable Housing, National Association of REALTORS Research Division
- The opportunity to build equity (wealth)
- According to research from the Survey of Consumer Finances, homeowners developed 36 times the average net worth than renters.
- Social stability
- According to research from the National Association of REAL TORS® and the American Social Workers Journal, homeowners are more likely to participate within the community
- Homeownership, according to studies, provides a greater sense of stability and higher self-image
- Homeowners are more enthusiastic about making their home child safe and ecologically friendly
- Homeowners are more likely to maintain the physical integrity of their home than renters
- Homeowners may benefit from lower crime rates*
- Homeowners enjoy preferential tax treatment
WHEN RENTING MIGHT BE BEST
Here are some factors to consider:
1. Down Payment
Would a down payment for a home represent a financial strain or is it simply not possible at this time?
2. Ownership Length
Do you plan on living in a home for less than three years?
3. Property Value
Based upon price trending, overall demand for the area and price range you are considering, is your property more likely to go down in value for the foreseeable future than to increase in value?
If you have answered yes to one or more of the three questions, it may be advisable that you rent.
Although some might say owning a home represents the American Dream, Real Living. Real Answers.SM suggests that ill-advised timing and circumstances can also lead to the "American Nightmare."
For instance, when prices drop significantly over a short period of time and it is for the same length of time that the home is owned, it triggers a negative economic event. In this case, the owners of a property do not have enough time to benefit from historically impressive appreciation.
Moreover, if you own a home for only a short period of time you will be denied the opportunity to spread the upfront inspection and closing costs over time.
BENEFITS OF RENTING
Accordingly, there are times when you should leave the so-called American Dream and instead, over a short period of time, revel in all the benefits of renting. It would be a pleasure to help you rent, whether you are a homeowner and want to rent or rent before you someday may own.
- By renting, you will be free of home repair costs and homeowners insurance which is more costly than renters insurance.
- If the stock market continues to outpace real estate, as it has over the last decade, then renting while investing in the stock market might also be beneficial.
A Berkshire Hathaway HomeServices RW Towne Realty agent can help.