Mar 26, 2013

Should You Rent or Should You Buy?

Rent is at an all-time high here in Colorado Springs. Right now, it is actually cheaper to pay a monthly mortgage than to rent a similar property. Since interest on your mortgage is tax deductible, tax benefits of owning rather than renting make it even more economically attractive. However, the question of whether you should rent or buy depends on a number of factors.

If you are considering buying a home, you should verify that you are qualified for a mortgage and for how much. You should not assume you cannot qualify for a mortgage. If you have decent credit and a good employment history, do not be discouraged even if you do not have much money to put on a down payment. There are some loans that require little or no money down, and the seller will often agree to pay much of the closing costs. It costs you nothing to get preapproved and will help in the rent vs. buy decision.
How long you plan on living in your next home before moving should play a large role in deciding whether to buy or rent. Generally speaking, if you are planning on moving in a year or less, it will be cheaper to rent. You should also consider if you will have to move without much notice, as is often the case with military families. Will you have the time needed to sell your home before you move? Would renting out your home be a viable option? You can use this calculator to see if the numbers are in your favor to buy or if renting will be a better choice for the time being.

If you are planning on staying in your next home for a while, and are preapproved for a mortgage, buying a home is usually a sound investment. While rent is money that you will most certainly never see again, a mortgage in a stable economy can usually be expected to be recouped when sold. Not to mention the joy and pride of home ownership.
If you would like to look for a home, I am more than happy to help you make that dream become a reality. I can set you up with a lender that specializes in your particular circumstances. Please visit my website  or email me to see how I can help.