Rent vs Buy in Dryden>Question Details

Megan Murray, Home Buyer in Freeville, NY

Would it be more economically practical to rent a home for 2-3 years or buy and sell?

Asked by Megan Murray, Freeville, NY Thu Dec 20, 2012

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Answers

6
Mack McCoy’s answer
Currently, interest rates are being held artificially low to stimulate the economy, so it will likely be more expensive to borrow money in the future.

It is commonly believed that higher interest rates will make home prices lower, so there's that consideration.

Nominally, the cost of home ownership is at late-20th Century levels, meaning that the price of homes and the interest rates make the mortgage payments about the same as in the late '90s. Rents are higher.

I am a buyer in this market.

All the best,
0 votes Thank Flag Link Thu Dec 20, 2012
This largely depends upon the circumstances involved. By being a smart buyer, the indicators are still there (interest rates, inventory, price etc.) that make buying a more favorable option than renting.

The best way to clarify your options is to begin the process of becoming truly informed about your local real estate market, making knowledge your best resource. Using real estate websites such as trulia, working with a realtor, attending open houses, etc. are excellent means of preparing yourself to make an informed decision when the time presents itself.

Best regards,

Bill
1 vote Thank Flag Link Sat Jul 13, 2013
Interest rates are on the move and not in the right direction for purchasing a home. Now is the time to "get in" before they rise too much higher. Rates are still historically low and you do not want to miss your chance to own your own home with such low rates!
0 votes Thank Flag Link Sat Jul 13, 2013
Every Market is different. You need to work with a good Buyers Agent in your area to help you answer that question for you. Currently in our Market area it would be wise to rent if you are not planning to stay at least 5 years or more. There might be exceptions to this but not too many other than the right rehab property.
0 votes Thank Flag Link Thu Dec 20, 2012
For that answer, you would have to be a soothsayer and know where the market will be.

My personal feeling is (and I say this as a landlord), why pay someone else's mortgage?

On the other side of the coin, you should figure in closing costs and soft costs as opposed to how long you intend to stay in the house; housing rises and sinks are outside of the realm of real prediction.
0 votes Thank Flag Link Thu Dec 20, 2012
Depends; 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.
0 votes Thank Flag Link Thu Dec 20, 2012
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