Rent Versus Buy: Top Five Reasons to Stop Paying Rent

It is a hard sell to tell people to buy a home these days, and it is not the best advice for everyone.  In fact, many people with good credit wouldn’t qualify to buy, so renting a home is the only option available.

But all the bad news may be getting in your way of some good decision making when it comes to real estate.  Here are the top reasons you should stop renting and start owning, even in 2012.

1. Interest rates are low.  We may be seeing this change soon enough.  In the meantime, I can’t believe some of the offers out there for mortgages and refinancing.  Your monthly mortgage payments may be less than you expect and this may be time to lock in a rate which you won’t see again for many years.  Do your renting versus buying analysis with a trusted mortgage broker.  The online tools are not sufficient.

2. Economic sense.  Do you know where the market is going?  Are there any reliable predictions for the economy?  Forget trying to time a market.  If you are renting while you have the money to for a down payment, you are throwing money away!  Real estate has proven to be a good bet against inflation, which is one of the common economic predictions these days.

3. Rents are going up.  Because so many people are not qualifying for mortgages, there are more renters.  In my Boston market, the vacancy rates are low and rents went up sharply this fall.  Your rent has probably gone up as this is happening all over the US.

4. Control over your home.  When you own your home, you like it a lot more than a rental.  You have the flexibility in decorating and you won’t have to wait for a landlord to fix things. Your rental home can only be as pleasant as your landlord’s personality and attitude.

5. Where are you going?  If you are considering moving in the next few years, forget owning.  But if your plans are to stay in your area for five years or more, renting is a waste. In the long term, we find that real estate holds value while providing you with a home.

Furthermore, housing affordability is at it’s highest since 1970’s.  There are areas all over the country with home selling for less than the replacement costs, and coupled with your low interest rates, this makes a buying a home a great deal.

If you have enough cash for a down payment and you are still renting, please contact your real estate agent to discuss your home buying options.  Or contact me and I’ll find you someone who can do that with you.

The point is to look beyond the mood of the economic news and find the opportunity of home ownership.  At least learn your options before you listen to the negative naysayer who knows nothing.

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