What is best, Buying a house or renting?

Asked by cutlas12, Long Branch, NJ Sat Dec 22, 2012

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Mack McCoy’s answer
Mack McCoy, Agent, Seattle, WA
Wed Dec 26, 2012
If you believe in "efficient market" theory, they should be equal.

Interest rates are being held down to stimulate home buyer and investing. Rents have gone up as demand exceeds supply.

Historically, home owners have fared better financially than renters.

However, life is short - and there's no sense in tying yourself to a property if you want to live a footloose, fancy free lifestyle.

All the best,
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Anna M Brocco, Agent, Williston Park, NY
Tue Dec 25, 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.
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Jeanne Feeni…, Agent, Basking Ridge, NJ
Tue Dec 25, 2012
Good question, but one only you can answer. If you are in the position to buy and are decided on where you want to live, then the buying opportunity is fantastic with relaxed prices and low borrowing rates. If not, you may want to rent until you are ready. The rental market is quite strong with demand outpacing supply.

Jeanne Feenick
Unwavering Commitment to Service, Unsurpassed Results
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Keith Radhub…, Agent, Holmdel, NJ
Sun Dec 23, 2012
Do you anticipate being at the same place of employment for the next 3 years? No one can predict the future, but the average time a person stays in the same home in the U.S. is 7 years. There are a few thousand dollars worth of closing expenses involved, so you wouldn't want to lay out that money for the short term. When you turn around and sell, you have to consider a 5 - 6% commission that you'll pay out plus attorney's fees. Don't forget you'll be handing your own maintenance, property tax and home insurance along the way.

The traditional advantage is the tax deductability of mortgage interest ---- thus having a 'silent partner' in the IRS in the early years of your mortgage. Depending upon your purchase and the purchase price, a home has also been the conventional American equity builder. Once again, that tends to be a longer term proposition, 5 years or more. There are SHORT SALES out there if you are patient enough to wade through the long-winded and less predictable process.

But, as my esteemed colleagues point out, interest rates are at historic lows, so, if conditions are right, there's no time like the present to purchase.
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Joan Congilo…, Agent, Freehold, NJ
Sun Dec 23, 2012
It has never been a more opportune time to buy a home . Interest rates are very low , prices are still affordable and there are plenty of homes to choose from. If your credit score is good, and you have money saved for a down payment and closing costs buying is a much better option than renting
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Johnny Davis, Agent, Clermont, FL
Sat Dec 22, 2012
It really depends on your situation. Are you planning on staying in the home long term? Are you ready for the responsibilities that come with being home owner? Are you going to be comfortable with the monthly payment? These are the questions you need to ask yourself. In a perfect world, it's better to buy. However, as we know, this is not a perfect world.
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Sujatha Bhas…, Agent, Morganville, NJ
Sat Dec 22, 2012
Great question - definitely one you should know the answer to before you buy. It depends on a lot of factors. You should consider at least the top 2.
1. Financially - you should know what it will cost you to rent the home of your choice and what it would be to buy it. This will vary based on the area you are interested in and the particular community. With the interest rates being historically low, it has worked out cheaper for my Buyers to buy Vs rent the same kind of home. You get to write off the interest rate and the real estate tax at the end of the year when you mortgage a home. You get no such benefits with renting. Market in a lot of areas is getting better now. If you don't buy now, you may end up paying more later. Generally speaking in the longer run owning will work out to be beneficial than renting.
2. Emotionally - you want to ask yourself if you like the idea of owning or renting. If you buy, you will have the responsibility of home ownership so make sure when you do buy, that you allocate some money for repairs. On the other hand you will have a place that you can call your own and you don't have to worry about moving out or renewing leases.

You may want to check out my blog for more useful information:

Best Wishes,
Sujatha Bhaskara
Keller Williams Realty
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Abu Musa, Agent, New York, NY
Sat Dec 22, 2012
Buying property is always the best investment.So you may buy now because this is the best time to buy.
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