Our previous “Insights” post focused on the opportunity (or need) to make an unbiased comparison on whether to rent or buy for your next move and promoting the ability to use the FIRST IN “Buy vs Rent Calculator”, which is now linked at the top of this webpage. When making such an important consideration, you would also need to look at the specifics of the area you are considering.
As the below linked article indicates, there is a variation from city to city in terms of the cost of renting instead of buying. While this research is also helpful, there is an important consideration. The publisher of the below linked research represents apartment owners. Their mission is to show situations in which renting presents its best opportunities. Doing so favors them and their clients. At the same time, real estate agents are likely to produce facts to show how and where buying is the more effective decision.
In both cases, the information is most likely solid (although it never hurts to verify if possible). However, if you are basing your important decision on only one side of the equation, your decision may not be the most reasonable one. Whether you choose to rent, buy, or stay in your current real estate situation, there are thousands of dollars on the line based on what you decide.
Think about what happens when someone’s lease is up for renewal (tenants) or they want or need to sell (owners) and are facing the “rent vs buy” decision. Some people will only ask a landlord (or property management firm) for an opinion on renting in the current market, while others will only ask a broker for an opinion on buying. They overlook how the “suggestion” they will get directly favors the commission or income of the person or source providing it.
The goal should be to obtain information from both sides of the equation before making a decision, even though many people do not. The process should be obtaining information from both sides and directly comparing it to your personal situation. For example, if your research shows it would be better to buy in your area of interest, but your finances won’t allow you to swing the down payment, you may need to rent. Maybe not.
Your next task could be to explore “rent to buy” opportunities, which would accomplish your short-term need and your long-term goal. Knowing how to properly research would help you toward evaluating multiple opportunities and being able to take the best one for your situation.
We can help you, or your clients, to be “first in” on getting the right research and making the best possible unbiased decisions!