Rent vs Buy in 75110>Question Details

Alainna, Both Buyer and Seller in Palestine, TX

Is it better to buy or rent a home?

Asked by Alainna, Palestine, TX Tue Jan 19, 2010

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Answers

12
Alainna,
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
0 votes Thank Flag Link Thu Feb 11, 2010
Like many have said already, it all depends on the situation you are in. Personally, I would buy. Renting can become a bigger hasle then just going through with buying the home. Not to say though that all renting situations turn out badly. If you can afford the monthly mortgage payment and all other nescessities and still have a little more, why not own your own home! It is a big process but with the right amount of consideration and the right advice and help from an Excelled agent who knows what they are doing. Buying a home can be a lot easier than you think. Also when you buy your own home you can do whatever you want on the inside. Where as when you rent you have many restrictions to what you can or can't do within your walls (ie: hanging pictures, painting, etc.)

Good luck with your searches & future decisions!
0 votes Thank Flag Link Thu Feb 11, 2010
That is a great question, this is a personal preference and a financial dilemma that a lot of renters go through before they buy. As for renting or buying, you are the only one that can make the final decision but if you look at the numbers and you are financially ready to buy. I would emphatically say buying is a better long term alternative. Lets do some simple math, renting at 800 monthly equals $9600.00. This is just for tax purposes only since most are going to file over the next 4 months. You receive 0 federal credit for the $9600 you paid.

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.
0 votes Thank Flag Link Sat Jan 23, 2010
There are many things to take into consideration.

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.

Good Luck.
0 votes Thank Flag Link Fri Jan 22, 2010
It depends on you

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
Follow me on Twitter: http://twitter.com/Lynn911
Lynn911

http://www.lynn911.com
0 votes Thank Flag Link Thu Jan 21, 2010
You can make renting better, but the vast majority of people who have rented for thirty years are behind people who have owned for thirty years.
0 votes Thank Flag Link Tue Jan 19, 2010
I would consult an accountant after obtaining a good Faith Estimate in the price range of acceptable properties in the area. Crunch the numbers FIRST, I sure sleep better knowing where I stand on cash flow, IRS benefit(s) and hopefully a net positive to you.
0 votes Thank Flag Link Tue Jan 19, 2010
There are a lot of variable to consider. It all depends on your unique situation. How long are you going to stay there? How much difference is there in monthly costs between renting and buying? It is something you have to look at the numbers and decide yourself.

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.
http://www.trulia.com/blog/dan_chase/2010/01/does_it_make_mo…
0 votes Thank Flag Link Tue Jan 19, 2010
It depends on your outlook, your finances, where you plan to go in the future, prices, etc.
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.

Bruce Lynn
Keller Williams Realty
0 votes Thank Flag Link Tue Jan 19, 2010
Bruce Lynn, Real Estate Pro in Coppell, TX
MVP'08
Contact
A decision only you can make--consider--It’s all about costs and lifestyle. Costs—financing v. moving-in, mortgage v. rent, repairs v. upkeep. Lifestyle—stability v. mobility, predictability v. flexibility, equity v. freedom from debt. It used to be all about equity. Now, there are other variables to consider in the balancing of the buy/rent equation. Consider your finances and lifestyle and take it from there.
0 votes Thank Flag Link Tue Jan 19, 2010
If you are qualified to buy a home it is better to buy in this market. There are some great deals to be had on homes that are priced significantly below value right now. In addition you may also qualify for the home buyer tax credit.
0 votes Thank Flag Link Tue Jan 19, 2010
buy! you will be receive tax benefits and you won't be paying your landlords mortgage payment. Buying a home is great investment and now is a great time to buy!
thanks for your question
0 votes Thank Flag Link Tue Jan 19, 2010
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