Is It Time To Buy Instead of Renting?

For people renting a home, it is pretty typical to wonder, "Is it time for me to buy instead of renting"? For most people, owning a home is not only part of the American Dream, it is also likely the biggest single investment they will make and a significant step towards building lasting wealth. It is an exciting time.

Factors Affecting Rent vs Buy

There are three main factors that affect the Rent vs Buy decision: Interest Rates, Location, and Time Frame. Let's take a look at each of these factors and see how they affect peoples' decisions. Your specific situation is unique to you. We recommend that you speak with one of our Associates at The Real Estate Group for help in assessing your personal factors. They are experts in the area, what is available both to rent and to buy. They can help provide you with the best information so that you can make the best choices for you. 

Interest Rates

Current interest rates are hovering at or near record low rates. With the ability to lock in a mortgage with very low relative monthly payments, many people who have been renting are starting to consider buying in a serious way. If you were to look at interest rates and affordability today vs almost any other time in the past, today would seem like a pretty good time to buy, historically.

With many young people that are currently renting looking to buy and the cost of borrowing very affordable, inventory levels of homes for sale are low and homes are moving quickly on the market.  

Location

One of the advantages of renting is that if you do not like your current location, you can change it much easier than if you buy a home. It is some thing to seriously consider.

That said, with the pandemic and more people working at home than ever, many people are looking to set down roots,  to live further out in the suburbs where a larger home and more yard space is available and affordable. Many Buying is a long term decision. You need to consider your plans as a family, how soon before you might outgrow your home, and location specific considerations like schools and how close you are to shopping and other amenities.

Time Frame

Currently, for many people, time frame is the biggest thing that provides potential concerns about buying. There is a cost to buying and then selling a home: Down payment, appraisal fees, inspections, commission, etc do have a cost. Even if you are utilizing a VA mortgage, there is both a funding fee (which can be rolled into the mortgage but it is still a cost.). If you know that you are going to stay in your home for an extended time frame, then is it easy to see yourself recouping those costs. The shorter the timeframe, the more that those costs become a factor.

Need some help with the decision?

Not a problem at all. When you are ready, (or even if you just want to find out if you are ready!) we are here to help. The agents of The Real Estate Group help Virginia and North Carolina renters with the information they need when deciding if now is the time to buy every day. 

 

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