The costs of a down payment, insurance, and rising property taxes in many counties have some potential buyers wondering whether to rent or buy as a next step. Many of those who are now considering renting, whether residential or commercial, instead of buying understand the long-term impact of not having equity. They are, however, faced with the short-term. Some do not have enough for a down payment on a property that fits their needs and do not wish to take on additional financial risk to get it. That is a short-term reality.
The rent vs buy decision brings pros and cons on both sides. Some business and property owners hire FIRST IN to research their current vs potential situations because of the unbiased solutions we bring. One overlooked aspect of making the decision is that the best strategy for one person or family may not be the same for other people. It is generally not a geographic consideration. Saving thousands of dollars by not needing a down payment could pay down credit card debt, school tuition, or medical expenses.
One element of the ‘rent vs buy’ decision is that a decision to rent can be for the short term. Renting for six months or one year may give time for the tenant to save up or accumulate funds for a down payment, while being able to experience a new neighborhood. It may be time to find a roommate or investor partner for an eventual purchase. There may be an option to purchase after one year. I use the analogy of people who are not sure which model of car they wish to eventually purchase. Some people have been known to rent various makes and models for a couple of days each to help determine what they like best after experiencing them all. It is possible to do a short-term rental in different properties, but doing so comes with much more to consider than exchanging a set of car keys.
To help people make those decisions, FIRST IN offers our “Rent vs Buy” Calculator at https://firstin.com/rent-vs-buy/ . You can compare overall costs and rates in confidence, and without bias which favors one way over the other.
An important point is that we offer this free service for another reason. We also want to show real estate investors and professionals about the advantages of comparing multiple actions before you take them. It is an example of why we tell our valued clients and connections about “finding the deal” and THEN comparing and evaluating multiple options. Either way, we are ready to help with business plans, feasibility studies, and creating and implementing solutions. Contact us and let us show how we can make you “first in” on your next opportunity!
