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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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1215
Lions Peak Ln.
San Martin, CA 95046
  
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