Should You Buy or Rent | Ali Safavi

Buying a home is on the Do-To list of most Americans. It’s basically instilled in us from birth that home ownership is the American Dream. It is a wonderful way to grow your wealth and to even earn additional income. Not to mention the social status that’s attributed to owning a home. However, with all those perks comes risk. There’s no shame in being a renter. In fact, renting comes with a lot of perks. Here is our Ali Safavi Real Estate guide to rent vs buying.

Renting Pros/Cons

Pros

· Mobility (leave whenever you want)

· Landlord pays for maintenance – a huge cost savings

· Doesn’t require closing costs and other fees

· No fluctuation in housing expenses

· Allows you to test out different areas without putting down roots

Cons

· You don’t build equity

· Limited ability to customize your space

· Rent could go up over time

· Landlord might sell or decide to stop renting

Buying Pros/Cons

Pros

· You build equity

· The home value may increase

· Tax benefits

· Unlimited freedom to customize your living space

· You have a home to pass down

Cons

· Closing costs can be expensive

· Responsibility for maintenance and repairs

· Less flexibility to move

· Home value may decrease

How To Decide

The biggest factor is dollars and cents. Can you afford not only the down payment and mortgage, but closing costs, taxes and maintenance. What if your water heater goes. What happens if you discover mold? There are going to be unexpected costs every year.

Make sure you have stable income. Look at the neighborhoods and city – does it seem like it’s improving or going downhill. Are you looking to have kids? If so, how are the schools?

Buying a home is a huge accomplishment, but it can also be an overwhelming stress if you’re not properly prepared. Feel free to reach out to Ali Safavi Real Estate with any questions!