Should I Rent or Should I Buy?

by Ann Hayward 11/26/2017

Renting is a great short-term housing solution for millions of Americans each year. And, for those who don’t want the responsibilities of homeownership, it can also serve as a longterm lifestyle for those uninterested in equity. However, if you do hope to someday purchase a home, there are several reasons it is one of the best financial decisions in the long run.

Finding out when is the right time to buy a home is a difficult question to ask yourself. You’ll have to consider your current budget and future financial goals, your employment situation, and personal lifestyle preferences.

In today’s post, I’m going to discuss several of these considerations to help you determine if now is the time to buy a home or if you should continue renting for the time being.

Mortgage rates through history

One of the features of homebuying that is largely out of your control is the historical average mortgage interest rates.

While your specific rate will be based on things like your income and credit score, as well as the type of mortgage you choose, real estate trends will also have an impact on the rate that lenders use.

Rates are, on average, lower in the last five years than they were throughout the 80s, 90s, and 00s. With rates under 4%, these levels are unprecedented in the last 3 decades. However, last year did see a slight increase to 4.1%.

What are your long and short-term plans?

Many people who are considering buying their first homes are more concerned with whether it’s financially feasible than if it fits into their life and career goals.

Before you start shopping for houses and contacting lenders, it’s a good idea to sit down with your family or significant other and start thinking about a timeline.

First, are you prepared to live in your next home for 5-7 years? This a good baseline for the amount of time you need to stay in a home to make it worth the costs.

Next, would you have better career or education prospects if you were to move elsewhere in a few years?

Of course, these questions are not objective--you may never know for sure which is the best decision. However, having the conversation is vital to moving forward.

Are you prepared for the extra workload?

Homeownership is work. Aside from just having to mow the lawn and take out the garbage, you’ll also be responsible for repairs and maintenance that previously your landlord was required to do.

The good news is you can learn most things on YouTube. However, some repairs can be costly and require calling in a professional. Just like owning a car, homeownership has it’s associated upkeep expenses.

However, with that added responsibility comes independence. You can paint and change your home how you see fit without worrying about losing a security deposit.

Start considering these questions now and in due time you’ll have a better understanding of your current and future goals. This way, you’ll be able to choose the best possible time to buy a home.

Buying A Home

Buy Vs Rent

Renting

About the Author

Ann Hayward

Born in Philadelphia and raised in the suburbs, Ann Hayward got her Pennsylvania real estate license at age 18 even before going to college. This second-generation real estate professional followed in the footsteps of her father and two uncles, inheriting their passion for the business. Licensed in DC, Maryland and Virginia, Ann is accomplished in her career, with numerous designations including SFR, SRES, PSA, WHC, and multiunit Housing Development Finance Professional (HDFP) from the National Development Council. She specializes in Prince Georges and Montgomery Counties, Northern Virginia and Washington, DC, all jurisdictions where Ann has lived and knows very well. In addition to her professional expertise, she owns and manages personal investment property, understands and has been involved in the renovation/remodeling process, and has great resources which she shares with clients. When you hire Ann to represent you, she will make your buying or selling experience an enjoyable, rewarding one. Her compassion, sensitivity to her clients’ needs, eye for detail, and ability to see the big picture when guiding you through a purchase or sale are unique assets that will ensure your success. A diverse and relevant background also gives Ann a distinct edge. For 30 years, she worked in fast-paced, high-pressure television and theatrical production, attaining the highest achievement – DGA membership as a Director, and as an award-winning staff and freelance writer. Her keen audio visual skills and design sense benefit sellers in marketing their properties, and are invaluable in helping buyers see the potential of space. A true renaissance woman, Ann was also an income tax professional and office manager for H&R Block, so she thoroughly understands the tax and financial implications of acquiring and selling real estate. Her superior organizational skills are further evidenced as owner of a downsizing/professional organizing business, Managed For You, which allows her to connect with everyone from millennials to boomers and seniors, whether for small space planning or assisting with major decluttering and transitioning. Ann holds an AB in American History from Simmons College, Boston, plus attended Robert Wagner Graduate School of Public Administration where she was a candidate for Doctorate. She additionally studied Film Direction at the American Film Institute in LA, and was a Stanford University post-graduate Professional Journalism Fellow. Personally, Ann is an avid if not very good golfer, and the co-founder of a nonprofit 501c3 organization offering educational guidance, tutoring and counseling for youngsters from elementary school through college admission. She sits on the board of trustees of a nonprofit educational film production corporation as well. (202) 494-6252 [email protected]