Should I Rent or Buy
Looking down at shoes with one arrow that says buy and another arrow that says rent

 

Should I Rent or Buy?


Owning your own home is a classic American dream and part of American culture. Right now, more Americans own homes than ever before. Purchasing a home is a considerable financial investment, and does not guarantee that you will save money in the short or long run. The main considerations when deciding between renting or buying a home include your lifestyle, your ability to secure a mortgage and your financial situation.

As part of a lifestyle, rentals fit some people's time restraints. Renting an apartment or home requires fewer maintenance or upkeep requirements compared to owning a home. Renting apartments give people the opportunity to live in trendy, fashionable neighborhoods that may not be affordable when purchasing a home. Renting also allows people flexibility when a job or lifestyle dictates a move.

Not everyone can secure a mortgage. Despite the many types of mortgages and federal programs, some people simply do not have the needed credit rating, or they have too much monthly debt to qualify for a mortgage or to obtain the loan necessary to afford the home they want.

Other considerations are how much you want to invest in a home and how willing you are to let that affect your lifestyle. Dallas real estate, like other great cities in Texas, can be expensive and like all property, may risk unseen expenses such as major repairs, property tax reassessments, or disasters.

Buying a home does not guarantee equity or profit on the sale. Like all investments, a home carries a level of risk. Because there are fees and costs with securing a mortgage, you will pay thousands of dollars upfront for your home. Depending on your mortgage and payments it may take years to build enough equity to compensate that expense. If you need to sell in a few years, you may never recover those initial costs. If you move around frequently or anticipate needing to in the near future, you will want to seriously consider the expense of short-term ownership of a home.

Many factors affect the property value of homes, communities and cities. Take the following questions into consideration:

  • Does the community you live in have one primary company as an employer?
  • Does your community have one major industry creating most of your community's jobs?
  • Can a downturn in that company or industry shift the demand for housing where you live?
  • Are the demographics in your community changing?
  • Are fewer people moving into your community?
  • Is the average income in your community declining?
  • What is the likelihood of crime rising or of there being a lack of appropriate funding for schools or city services?

These factors among others affect the property values of entire communities or cities.

You should also consider what will happen to the entire housing market over time. If the economy is doing well homes tend to appreciate in value but in an economic downturn home values tend to stagnate. When you rent, you have more flexibility in reacting to major trends in the economy. When you own, you gain tax benefits by deducting certain home costs from your personal taxes.

Whether it is best to buy or to rent depends on each situation. If you weigh the lifestyle and personal changes and risks you can make an educated choice and make the decision that is best for you.


What Should I Buy

Which home is right for you? Learn more about the options available to homeowners today.

Learn More

Selecting A Community

Location! Location! Location! Selecting the right community for you may be just as important as selecting the right home.

Learn More

Choosing Your Agent

Need help choosing an agent?

Learn More

First-Time Homebuyers

Buying your first home is a major decision. Let us guide you through this exciting time. With Ebby Halliday REALTORS® you are in good hands.

Learn More

Buying Process

Your Ebby Halliday agent will guide you through every step in the home buying process, from determining your goals to the closing table.

Learn More

Bids and Offers: A Buyer's Perspective

As a buyer, learn about these easy to follow guidelines when making an offer on a home.

Learn More

Home Inspection

Choosing the right house for you is a critical and important decision. A home inspection can provide a level of objectivity when evaluating a home.

Learn More

Title Insurance

Mortgage lenders require their customers to get title insurance. Learn more about title insurance.

Learn More

Communities

Learn more about Ebby communities and the North Texas region.

Learn More