rent or BUY???

Although HOME OWNERSHIP is the first step into achieving the American dream and the best way to use "smart money", sometimes it's not always the right step depending on your circumstances. So how do you make this important decision? Here's 4 tips to consider when debating on whether to rent or buy home...

1- Your Stage of Life You're usally better off renting in the early stages of your career that may take you to another city in a year or two. If you move frequently, giving notice to a landlord is much easier than finding a buyer for your home especially if the market is soft. Typically, you should plan to stay in your home at least two years or more to recoup closing costs.

2- Your Lifestyle Buying a place to call your OWN lets you decorate and paint your home any way you want! However, it does entails regular maintenace, like cleaning the gutters, and can result in additional expenses that should be factored in your annual budget. Renting requires less responsibility and offers nearly maintenance- free living yet limits you to the way you can personalize your home. So, if you are in the habit of spending your extra $$$ at Nordstrom versus saving, then HOME OWNERSHIP is not for you at this point. You have to learn how to condition yourself to start using "smart money". Also, keep in mind that when you rent you spend thousand of dollars a year paying on a home that is NOT yours and you are increasing someone else's wealth rather than your own!

3- Your Timing If you are financially and personally ready to buy a home, there are factors within the economy to consider. The real estate market is in constant change as well as mortgage rates. But if rates are low and housing prices are on the decline, it may be a good time to buy.

4- Your Finances Depending on where you live and your needs, renting allows you to manage your monthly budget and savings rather than a home where you may have unexpected maintenance costs. Although your rent can increase every year, it will provide with the ability to save if your bigger dream is to have a nice nest egg.

Even when owning a home, savings should not be neglected. Another added benefit to HOME OWNERSHIP is the ability to deduct your propety taxes and mortgage payments on your income taxes. With these factors, paying a mortgage may come out to be just the same or cheaper than renting!!! Do the math. If you can cover the cost of a mortgage and continue to save than its time for you to email me at dianatherealtor@gmail.com so we can start visiting some Open Houses and start using "smart money"!!!