Rent vs Own,

Can you imagine renting a property for several years and one day unexpectedly the owner of the property referred to as a landlord places a for sale sign in your front yard offerings the home for sale? 

For the landlord another opportunity has appeared and they need access to the equity you have helped them build.

Think about the relationships you and establish with the neighbors, your friends, about to be uprooted.

Think about the disruption in the children’s schedule should you not be able to find a new rental in the same area forcing the possibility of a new school system.

Think about the expense and hassle associated with a force to move.

Hello my name Helen Williams, Certified Mortgage Planning Specialist with Titan Funding Group in Eugene, OR.

There are many advantages to buying a home versus renting one but first let’s explore the advantages of renting.

In the argument for renting a home the two main advantages are

  • Little or no responsibility for maintenance
  • Easier to move

 The disadvantages to renting are…

  • No tax benefits or deductions unlike what comes with home ownership
  • No equity is accumulating
  • The landlord loves the renter because the renter is paying off the landlords investment and providing for they’re retirement
  • No controls over rent increase so the stability long term associated with a fixed rate mortgage the renter cannot benefit from.
  • Possibility of the property being sold out from underneath the renter then facing eviction
  • The advantages of home ownership is that, long term the property is building equity
  • There is a the sense of community, pride, stability and security associated with home ownership.
  • With home ownership one is free to change the decor or landscaping.
  • And being a renter one is not dependent on a landlord to maintain the property

Long term here is what one should truly consider…

  • 20 years ago what did a loaf of bread cost?
  • A gallon of gasoline?
  • The price of a car?

What did it cost to rent the similar property 20 years ago when compared to the inflation adjusted rents of today, are rents today higher or lower?

With home ownership you have the opportunity with a fixed rate mortgage to permanently fix your cost basis for the roof over you and possibly your families head.

It has been proven long term, many times at the end of a person’s life, most of their wealth that has been accumulated, was a result of owning real estate.

Not stocks, not bonds, not mutual funds, no other investment vehicle allows one to cash in every two years for a tax free gain of $250,000 for the individual and $500,000 for a married couple. 

One of the processes I provide for my client is called a Rent vs. Own Analysis. 

This is the process of obtaining a few pieces of information from you, the process takes less than 10 minutes and from time to time it might make sense to rent vs. own but no one should make that decision without thoroughly being informed from having examined the REAL numbers and being honest and objective with the results.

To be able to schedule a no obligation, exploratory conversation to determine if there is a better solution for you in the market and to make sure you have the right strategy, call today and be sure to ask about the complimentary Total Cost Analysis report should one decide to move forward with purchasing a home to ensure selecting the right mortgage.

What do you have to lose? More importantly, what do you have to gain? 

The Truth, not an opinion.

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