Rent vs. Buy

SHOULD YOU RENT OR SHOULD YOU BUY?

The debate continues over whether it is best to own a home or rent a home. There have been various news articles on the internet providing different views on this subject. The answer won't come from anyone but yourself.

Let's face it, we all have to live somewhere whether we are paying rent or a mortgage is the question. At this time, rents are high. You rent a home for a year, move out, and you are not refunded any of the rents you paid through that year period. You don't gain and you don't lose.

If you purchase a property and pay a mortgage will it be a good investment? Obviously there have been some issues with the Real Estate Market. We continually hear the media speaking of short sales, foreclosures, and a terrible market. Of course there are short sales and there are foreclosures. These types of sales are present in both buyer and seller markets.

So will a purchase be a good investment? I believe so and here is why. If you are going to live in the property for a couple of years, the market will return and it is already returning. No we are not seeing the high sales prices we have in the past but we are making a steady upward turn towards higher market values. Homes are selling and although there are exceptions, they are selling in a reasonable amount of time. Will some be short sales? Foreclosures? Will some Seller's lose money? YES of course they will and again that happens in any type of market.

Keep these things in mind. You have to pay to live regardless of whether it is rent or a mortgage payment. The market in specific areas, Phoenixville being one, is moving upward. The rates are very low and the prices are affordable. Many times a buyer will find they can purchase and have a lower monthly payment with a mortgage then they would renting a property. And those numbers cannot be disputed.

So if you are on the fence about purchasing a home look at the pros and cons and make the decision on what will work better for you. Will your mortgage payment be less than a rent payment? Will you purchase more for your money now with low interest rates and good market values then you will be able to in a year or so? Is owning a home and making it your own important to you? Only you can make the decision for yourself.

95% of the sales I have made this year for Seller's have resulted in a profit. Some very large profits and a few marginal. But the point is, they resulted in a profit. Those that did not bought during a VERY high market, sold very quickly or had a 2nd mortgage on their properties that had to be paid.

Not sure what is available to you? Visit www.JenniferDaywalt.remax.com for a complete list of homes available. Happy House Hunting!

 

Jennifer Daywalt, Realtor
RE/MAX Results Realty
Phoenixville's Home Town Realtor
Top Realtor 2004-2011
www.JenniferDaywalt.remax.com
Author of "Ask The Realtor" in The Phoenix
RE Blogger for The Phoenix
610-489-7355 Main - 610-999-7693 Direct