October 4, 2013
The Tipping Point
VERY Real Estate weighs in on the age-old question – should I rent or buy?
At some point, typically when one is asked to renew his or her current lease at a higher monthly rate, everyone asks himself or herself, “should I consider buying a home?”
Some renters view the rental increase as a “convenience fee” – the price to not be bothered with the headache of looking for a new place and moving. But, is that really the right approach?
Tipping point is defined as “the point at which a series of small changes or incidents becomes significant enough to cause a larger, more important change”.
Many factors come into play when considering the rent or buy question – financial, lifestyle, career path and responsibility – to name a few. Many people seem to view owning a home as a life changing process, but a high percentage of buyers who transition their first property into a rental property when they have outgrown the space, adds the element of investment to the mix.
The general rule of thumb is that it’s smarter to buy a property if you plan to be in an area for seven years or longer. Stability (no more landlords!) and freedom (paint the walls whatever color you like!) are two points for buying that can’t be ignored.
According to Trulia Trends, buying a home is 44% cheaper then renting, regardless of rising home prices. This statistic is based on a few assumptions, including a person putting 20% down.
Only you can decide what your tipping point will be. Once it tips towards the buy side, be sure to do you research and select a real estate agent who will be on your side for the rewarding challenge of selecting the right property for you!