BUYING VERSUS RENTING To evaluate whether to buy or rent a place to live, research the options that exist in your new community and compare the annual cash requirements for a comparable home or rental. Understand the existing real estate market, the available interest rates and the types of rental units in the area. Consider the amount of time you will be spending at home. Nearly 50 million people work out of a home office. If you are among them, think about a home or apartment with space for an office. Some apartment complexes offer business services such as fax and copy machines and telephone services.
Realistic Rental Evaluation – Several reasons people choose rentals
- desire the flexibility renting affords,
- may have lost money on a recent home sale,
- are encouraged by their employers to rent,
- have a job-related move planned in the near future or
- do not want the responsibility of owning a home.
Before choosing a rental as a residence consider:
- the privacy and noise level,
- the initial cash outlay,
- the cost of renter’s insurance,
- the level of safety the location affords and
- the required financial commitment.
If safety features (i.e., locks for windows, mailboxes, and dead bolt locks) do not exist, have them added. If you expect to live in an area temporarily, evaluate the rent plus upkeep and the ease with which you can terminate your lease.
Home Purchases: An Investment Homeowners have to think about the financial and personal commitment they will need to make for the upkeep and repairs of a home. Exterior features of a home such as: painting, lawn maintenance, cleaning rain gutters, and the interiorincidentals – curtain rods, paint, decorations and carpeting. Two biggest reasons people buy a house
- they prefer larger/more private living quarters,
- they want the tax advantages of home ownership.
Final Home Considerations
Laws and taxes can make a huge difference in a property purchase and these vary from state to state and sometimes by municipality within each state. Real estate agents or the local city or borough hall personnel have up-to-date information about taxes and variances. Calculate all tax deductions that are associated with the negotiation into your evaluation. When evaluating renting versus buying a place to live it is most important to fully understand your financial capabilities so that your current standard of living is not compromised. This includes the cash flow and funds available to own, maintain, repair and upgrade a residence or rental unit.