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Nick Gandhi's Blog

By Nick Gandhi | Agent in Stamford, CT

Should I continue renting? Or Buy?

This is an age old question that daunts many current renters. “Should I make that leap and buy?” “When will I break even?” “Can I afford it?”

 

These are all good questions, and for that I invite you to use several rent vs. buy calculators, as well as talk to experienced realtors who can give you good advice on property values and the joys/pains of home ownership.

 

Based on 50 major cities, Trulia’s rent vs. buy Index compares the average list price to average rent on two-bedroom apartments, condos and townhomes listed on Trulia.com.

 

Best Places to Buy:

1)   Arlington, Texas

2)   Fresno

3)   Miami

4)   Mesa, AZ

5)   Phoenix

 

Best places to Rent:

1)   New York

2)   Seattle

3)   Fort Worth

4)   Omaha

5)   Sacramento

 

Buying a home is surely an excellent way to build wealth, but it is not for everyone. The ‘American Dream’ can be the ‘American Nightmare’ for some and one has to be careful.

 

NY Times has an excellent article and a rent vs. buy calculator which has helped many people on the fence make a decision. You can try it out at <http://www.nytimes.com/interactive/business/buy-rent-calculator.html?ref=realestate>

 

If you feel you are throwing your money away on rent every year, I urge you to talk to a real estate professional in your area, who has the local knowledge of the market and can guide you based on your situation.

 

I would love to hear comments whether you think it is a good idea to buy or rent in today’s market.

 

Nick Gandhi

Equity Capital Real Estate

(203) 280 3838

 

Experienced Realtor serving the Lower Fairfield County!

Comments

By Dorrine,  Sun Sep 30 2012, 16:34
We rent at the moment, but hard to figure out if now is the right time.
By Nick Gandhi,  Sun Sep 30 2012, 20:18
Hi Dorrine,

While it is true that property values have stabilized and certainly started rising in some parts of the country, and interest rates are still at record lows, home ownership is not for everyone. It can be a terrific way to build wealth if done correctly.

For your individual circumstance, we would have to consider several things such as your personal and family goals, income, debt, current rental expense, credit, down payment, and many more. There is no one size fits all solution.

I would be happy to discuss some of these factors with you and guide you to determine if this is something you'd like to pursue. Additionally, we have several excellent professionals in our network who can help you as well. Feel free to call me anytime to discuss.

Thank You

Nick Gandhi
Equity Capital Real Estate
(203) 280 3838
http://gandhi.listingbook.com
By Dorrine,  Mon Oct 1 2012, 20:33
Hi Nick, we currently spend 2250/month on rent, I've lost my job but my husband works in Norwalk. Would like your take on if it is beneficial to buy or continue renting
By Dorrine,  Mon Oct 1 2012, 20:34
Adding to the previous comment, I have excellent credit score, but my husband's is so-so. If we decide to buy, will mortgage be an issue?
By Nick Gandhi,  Mon Oct 1 2012, 20:45
Hello Dorrine

There are several excellent homes available that would serve as a good primary residence, as well as investment properties down the road that would cost you less than $2250/month.

I would recommend giving me a call to discuss as we can go over several other factors. I can also put you in touch with many other professionals (mortgage lenders and attorneys) who can help guide your decision and answer your question regarding the credit scores, affordability, etc.

Feel free to call me anytime (203) 280 3838

Thank you

Nick Gandhi
Equity Capital Real Estate
(203) 280 3838
http://gandhi.listingbook.com
By Realtypin,  Sun Oct 7 2012, 11:34
Dorrine; i think to buy or rent will solely depend on the specific situation and the specific deals that you find in your area
By Mark Acantilado,  Tue Oct 9 2012, 07:04
In lieu with renting versus buying, don't you mind if I share an article I wrote about renting and buying? http://ezinearticles.com/?Renting-Versus-Buying:-The-Pros-and-Cons&id=7233241

Hope this adds an insight too.

Thanks,
Mark Acantilado | http://www.agentcampus.com/
By opondomusa,  Tue Oct 9 2012, 07:43
This is a topic that will not leave us soon to buy/rent.

Thanks for adding your advice to this topic.

Found this article about buying/renting informative as well:
http://www.realtypin.com/News/Story/760-Buy-or-Rent-Surprising-New-Numbers
By Nick Gandhi,  Tue Oct 9 2012, 08:28
Mark and opondomusa - thank you for sharing.
By Terry Tracy,  Thu Oct 11 2012, 06:45
To buy or to rent is a question that arises very frequently. I personally feel that it not only depends on the location where you want to rent or buy your property but also on one's financial condition and an experienced person can advice you better after analyzing all the factors.
By Ross Schneider,  Fri Oct 12 2012, 09:47
Renting as of right now is the best option. Yes, mortgage rates are at an all time low but can only stay artificially low for so long. With rentals, you don't have to take out a mortgage and pay interest on a loan that could cost you more than for what you bought the house. There are trade offs though. With rentals, you have no equity in your home and will not be able to take advantage of the increase in property value over the years. With a rental, you do not have to worry about losing equity in your home as time goes on. It really depends on if you can afford to move into a home. Do you want to take a risk, or play it safe?

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