The oft-asked question of whether to buy or rent real estate isn’t a simple one. This is because the choice depends on your own preferences, financial needs, and lifestyle. As you decide what to do, Lauri Bauman - Big Journey Home at Keller Williams Realty, serving Denton, Lake Dallas, Frisco, Flower Mound, Argyle, McKinney, and Corinth, TX, recommends considering a few factors to help you make the best decision.
Here’s what to think about before you decide whether to buy or rent real estate:
- Length of Stay: If you plan to stay in an area for three or more years, purchasing a home is a good financial decision. If you will stay for less time, all the closing costs and capital gains taxes involved with purchasing make renting the smarter choice. If you are new to an area, you may also want to rent for six months to a year to get to know the neighborhood first and decide if it’s where you want to put down roots.
- Market Comparisons: To plan your financial goals, compare the rental market to the purchase one. If the price-to-rent ratio is less than 20, buying is the better choice. If it’s more, you may want to rent. For example, if the costs of ownership were $2,000 per month and renting was $1,800 per month, you could put the extra $200 into an investment account and make money from it. Any difference less than that, however, and it’s best to invest in your own property.
- Control: Some people prefer to avoid the restrictions of rentals. When you live on someone else’s property, you don’t have the freedom to make changes to the home or do what you want. If you buy, you have more control. Just don’t forget to ask about any restrictions, such as HOA rules that may still impact your freedom to do what you wish.
If you think buying real estate is the right choice for you, start your property search by turning to Lauri Bauman - Big Journey Home at Keller Williams Realty. As your real estate agent, she will leverage her experience to find you the perfect home in the right neighborhood for your family. She is a native and resident herself, so she will provide you with valuable advice. Call her today at (940) 321-5111 or text (214) 566-1088.