Thoughts on Buying vs. Renting

Posted on Friday, September 14th, 2012 at 11:32am.

Austin homes Given the choice between buying and renting, which would you choose? For many people, the obvious answer would be “Buy, of course.” Home ownership has been a long tradition for many families. It makes people feel good about how they are spending their money. It makes you feel secure and offers a sense of pride and ownership. And while all these reasons are true enough, the reason that should motivate nearly everyone to buy is that buying is almost always the more affordable alternative. Although the most common obstacle to buying a home is saving up the money for a down payment, research shows that in the economic conditions we are living in, buying is definitely the cheaper option. In some cases, buying can be as high as 70% more affordable than renting. While in the more expensive regions of the country, such as New York, California and Hawaii, the advantage of buying over renting is smaller, even in these cases, buying will save homeowners an average of 30% on their housing payments each month. There are a few key things to remember when trying to save all you can when buying a home. Having a good mortgage rate can make all the difference in the world, so make sure you pay off debt and keep it off in order to have a good credit score. Itemizing your tax deductions is just as important as it will lower your taxes. Finally, after you buy a home, you’ll get the most bang for you buck if you wait at least seven years to move again. Of course, you don’t have to adhere to these tips to make buying the more cost effective option. After all, buying just makes sense because you are actually purchasing something, not handing over money to the landlord without anything to show for it. Here in Austin, the real estate market has been relatively stable amidst the recession, which is all the more reason to buy instead of rent. With the costs of rent outgrowing the costs to buy, it just makes sense to buy a home if you plan on living in Austin for more than a short period of time. To find out more about the advantages of buying, click here to read more. And for those of you interested in buying Austin real estate, be sure to search virtually all Austin homes for sale with our online home search tool.

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