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Most folks interested in real estate have been led to believe that BUYING
property is the only way to go; building equity and reaping tax
benefits appear to be the only considerations in many cases.
The truth is there are advantages to both buying AND renting.
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According to an article in The San Jose Mercury News (February 14 th
, 2004 sec. G), buying a home makes sense for people who:
- Plan to stay in there homes for at least
two to four years
- Can afford the monthly mortgage payments,
insurance and property tax fees
- Are reasonable sure their income and/or employment
are secure
- Are ready to accept/absorb repair and maintenance
costs
- Are aware that home ownership may mean compromise,
in that the home you can afford may not be
as big as you want or its' location may not
be where you want
In general, renting
is a good idea for those who:
- Think they may want to leave
the area in less that two years
- Like the flexibility of being
able to move easily (think frequent job relocation)
- Like the lack of responsibility
for major upkeep and maintenance
- Don't have the cash flow
for mortgage payments, insurance and property
taxes
- Don't want to or can't reduce
other high cost monthly obligations, like frequent
travel or private school tuition
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Note
the lack of “No Down Payment” as
a reason to rent; with all the lender programs
available to individuals in all types of income
brackets, virtually anybody can “get in
the door” of a home purchase.
People site various concerns for trying to buy over renting, including
the ongoing knowledge that SOMEONE ELSE owns your living
space.
Another obvious concern is the fact that, as a renter, you receive nothing
when you leave a dwelling.
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These
concerns, say financial planners, must be put
in prospective: think about WHY you are choosing
to live in a particular place and weigh the
financial benefits of both renting AND buying
before you decide which route to take.
Several “rent vs. buy” calculators
[ www.mortgage-calc.com ]
are available online to help you get ballpark
figures with regard to your best individual financial
options. However, it is always best to
talk with a qualified accountant or financial
planner before you decide on the best course
of action for you and your family.
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12237
Stonebrook Dr.
Los Altos Hills, CA
  
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