There are several considerations when comparing renting versus buying, and it may differ based on the real estate economy and your personal finances. The Advice On Renting Versus Buying MA Real Estate below may help you make an informed decision on which alternative is best for you.
Renting Versus Buying
Renting MA Real Estate
Renting is a better option if you do not plan to live in the area for 5 to 7 years, are worried about job security, have declining credit scores, or simply do not want to manage the upkeep of a property. Unless the real estate market is good and/or on a steepupward trend, it typically takes 5 or more years to realize equity in a piece of real estate. If the market is declining or you are not sure how long you plan to stay in a property, renting could be the smarter option.Job security is another consideration. If you rent, you can react to the losing of a job by moving to a smaller apartment and lowering recurring expenses. A mortgage payment is not as easily reduced. If you have bad credit, that can result in higher monthly mortgage payments, making home ownership a more expensive alternative to begin with. Lastly, taking care of a home takes significant time, energy, and financial resources. There are general expenses related to home maintenance. You may decide that taking on those repairs are not desirable or not feasible for your family.
Purchasing MA Real Estate
Buying has many perks such as potential tax deductions for loan interest and land taxes, creation of equity over time, and ability to control your living space. In most cases, purchasing a home costs similar to or less than renting. If you intend to stay in the area for a long period of time, real estate also typically builds equity for a positive return on investment. A declined market is a great time to buy since prices are reduced and the promise of gain better. Lastly, purchasing a piece of property allows you to make the space your own. You can upgrade appliances, flooring, fixtures, and other features to transform the home into a personalized space. These factors make real estate ownership very rewarding both personally and financially.
Advice On Renting Versus Buying MA Real Estate
Estimate the cost of renting versus buying (based on existing home prices and applicable rates). When home prices decline, rental costs do not automatically follow, so a declined real estate economy may be the perfect time to purchase. The above advice on renting versus buying MA real estate is offered as a general overview. Before finalizing your plans, consult with a real estate professional for accurate details on the real estate market and a mortgage broker on mortgage rates and estimated payment figures. Only with current information can you make an educated decision.