Happy Money Monday! I went to an open house that Austin was holding this past weekend, as I'm seriously contemplating buying a home. It's a daunting endeavor to most people, but after renting in NYC for 10 years, I think I may want to take the plunge. But is owning a home for everyone? Austin explores the pros and cons of Renting Vs. Buying.
Renting VS. Buying...by Austin the Realtor
As a realtor, I get this question quite often from prospective new buyers, friends and colleagues. Which is better? Is there a right answer? Yes, there is. But the right answer for you may not be the right answer for someone else. Everyone’s situation is different, so there isn’t a general right or wrong answer.
I am an advocate of both. As a home buyer, you have the liberty of making changes to your home as you see fit. In a one family home, you don’t have to deal with upstairs or downstairs neighbors. Then there are the tax benefits. As a renter, you don’t have the hassles of worrying about large repairs needed. The maintenance of the home is the responsibility of the landlord. Renting is usually cheaper than owning in regard to your monthly expenses.
"Rich Dad, Poor Dad” by Robert Kiyosaki has an interesting way of viewing home ownership. Traditionally, the American Dream is to own your own home. It’s viewed as the largest investment of your life...your greatest asset. Kiyosaki views this as just the opposite. When you take out a mortgage, this will probably be the largest loan you ever take. Therefore, it’s more of a liability than an asset. Yet, a profit can be made in the right market, so it's not a total loss.
The key is if you are renting and then you purchase a home and your monthly expenses go up without an increase in income, this may be more of a detriment. To take the leap from renting to owning takes planning and a very close look at your finances. You may have a surplus each month that can sustain the increase. Many want to own a home just to say they own a home and will make sacrifices to achieve it. Own for the right reasons and not just to keep up with the Joneses. Proper planning will make the transition much easier. This may include renting a little longer to build up your savings. Buy when YOU are ready, not when others think you are. PLUS do your research!
Over the years, I've been blessed to have spent time with, befriend, love, learn from and share experiences with people who have helped me grow and inspire me everyday. They have shared words of wisdom, strengthened me with encouragement, gave me joy with a smile, comforted me with a hug, gave clarity to my visions and dreams and renewed my spirit with faith. It is through family and friends that I manage to be happy and hopeful.
These relationships work because we share our philosophies, our personal truths and an outlook that prompts us to seek something greater in all and in ourselves. Sharing a journey heartedly illuminates our lives and enriches our experiences. It keeps us moving....always evolving....ever changing.
I have been transformed by the wisdom, opinions, insights and revelations of those who have shared their journey with me. It's a blessing I long to share with you through my first ever blog. For me, writing is a reflection of my own direct experience and I look forward to all of you sharing your thoughts and experiences with me.
So...with that said....can I just say.....??? :-)