Interest rates are still favorable, which leads us toward the buy side in rent vs. buy. But, we cannot ignore that some larger lending institutions are making it tough for some to qualify right now for a home loan. http://www.texasrealestate.com is a great resource. There are loan programs specific to Texas home buying that we real estate agents are trying to get in front of the buying public: USDA guaranteed loans, VA loans, Texas Veterans Land Board loans, Texas First Time Home Buyer Tax Credit Program, and Mortgage Credit Certificate (MCC) programs. There is also foreclosure avoidance information at http://www.keepmytexashome.org. Buy - but buy smart and with the help of a Texas Realtor.
Have a blessed day!
Ronda Allen, Realtor, C.P.M., SFR, TAHS
Good luck with your searches & future decisions!
If you buy, in most cases you will receive a tax deduction for the interest paid and also for the taxes paid. If the monthly payout is similar as it is above for your rental payment. Hypothetically speaking you could receive a refund of about $2000-30000 for the taxes and interest paid over the year. All things being equal you probably saved yourself about 200-300 a month in the end. As I stated in the beginning renting or home ownership is a personal decision, but when you analyze the numbers over time, home-ownership has its privileges.
How long do you plan on living in the property?
A. Long time- perhaps buying is best.
Do you have sufficient financial resources?
A. If yes- buying COULD be better.
if no, renting is usually more economical.
What are the monthly/yearly costs of Rent vs. Buy?
A. This will help determine the savings.
Owning a home you receive annual tax benefits, set mortgage amount, not have worry about landlord issues, do as you wish with property.
Up to you and short long term goals
National Featured Realtor and Consultant, Texas Mortgage Loan Officer, Credit Repair Lecturer
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I wrote the blog below. It does not say to rent or to buy. It shows things to look at to see which really makes more sense for you to do. If you do an honest evaluation based on your numbers you can see which is better.
I typically say if you plan to be in one place about 5 years or more, your finances are solid then it makes more sense to buy.
If you move around a lot and think this will continue then perhaps better to rent.
Keller Williams Realty