Is now the right time for you to buy a home, or should you continue to rent? There are many factors to weigh in on for the first time home buyer and several arguments for both sides.
Let’s get the disclaimer out of the way first. We are just scratching the surface to give you an idea of the different Pro’s and Con’s associated with buying and renting. To make an informed decision you should consult your realtor who will look at your unique situation and help you make an educated decision. We welcome your feedback and would love to hear from you if you have any additional questions. Just email us with your question and we will be happy to get you the information you need to make an informed decision.
Buying a home is a big responsibility, financially and emotionally, however most people want to own a home. There are a number of considerations you must make when making this decision. Renting and buying both present a number of pros and cons without further delay, here are the Pros and cons associated with renting and buying.
Pros and Cons of Renting in Spokane
- Lower Up Front Costs. As a renter you will be required to pay a first and last month’s rent and if you have a pet most likely you will have to pay a security deposit. As a new homeowner depending on your credit score you will have a down payment. The difference could be significant
- No Maintenance. If the screen door comes off the tracks, or the drain gets clogged and you need a plumber, getting things fixed is as easy as a phone call if you have a good landlord. This is true with home ownership also; the major difference is that when renting the charge has already been built into your rent.
- Mobility and Flexibility. If have not decided where you want to live this is a great way to test-drive the neighborhood you like. In addition if you have not settled in your career or may be thinking about relocating in the near future, it is far easier to have someone take over your lease then it is to sell or rent your home.
- Time to Establish Credit. If you have marginal credit or bad credit it can significantly impact how much you are paying on your mortgage and the amount you will have provide for a down payment. Renting gives you some time to establish better credit through one-time rental payments and allows you to address other issues to get you credit where it needs to be.
- You Are Not Building Equity. When you rent, you are paying someone for the right to live in his or her property, the property will never become yours. When you move you start over and do not have an asset to sell.
- There Are Not Any Tax Benefits. Unlike owning your home the renter in Washington State does not receive any tax benefits. When you paying for rent you are paying for maintenance and property taxes through but you are not entitled to claim any deductions on your taxes.
- You Are At Your Owners Mercy. Property owners can raise rent, making costs higher with little notice, this is especially true as housing prices rise and demand for apartments increase. If you would like to put some personal touches on your property you are going to need to make a call, changing you apartment in any way without permission can lead to some hefty fines. Depending on your agreement with your landlord this could include everything from painting your white walls to hanging pictures. In addition in Spokane renters are subject to restrictions on the property with very little notice including pets, children and even noise.
Pros And Cons Of Buying A Home In Spokane Washington
- You Break It You Bought It. Depending on the home you may have to spend time and money keeping your home in good repair. As a homeowner no one is including maintenance into your rent so you will have to set aside funds for the unexpected leak, light bulb or furnace filter.
- With Property Comes Taxes. Although you get to deduct property taxes on your income taxes you still have to pay them. Although predictable to an extent property taxes can go up adding to your monthly payment.
- Rising Home Values Are Not Guaranteed. Your homes value is subject to the market, and several other factors. Historically buying a home with a responsible loan has been a safe investment but as with everything in life there are no guarantees.
- You Can Build Equity. The biggest advantages of buying a home are financial. Homes historically rise in value anywhere from 4% to 6% per year. Even if your home doesn’t increase in value you are still building equity as you pay down your mortgage. As long as your home maintains its value you investing in a valuable asset.
- Home Owners Receive Tax Break. By deducting your mortgage interest payments and property taxes homeowners receive several deductions in Washington State that will reduce the cost of owning your home over the long term.
- Your Payments Stay Stable. By getting a fixed rate mortgage, your principal and interest payments stay the same for the duration of your loan, no one can increase your payment. The only fluctuation you may see is in your homeowners insurance or property taxes.
- Your Home Can Be Used As An Investment. Life has a funny way of changing and making plans for you, if you decide to leave you can rent out your home instead of selling and generate income. Using a management company and covering your rental costs and their fee allows you to continue to build equity and live somewhere else.
- By Owning You Are Buying Freedom. Freedom to decorate, own pets and customize your living space to suite your needs and lifestyle, this is the real joy of owning your own property, you get to make your home a reflection of you.
There are also hundreds of other factors that can make all the difference between renting or buying a home in the Spokane area. Do you need storage space, are you good at fixing things, do you have pets, what school district do you want your children to go to? The list is considerable, the key is to call a professional to help you make the right decision
The team at Synergy Properties will give you an honest estimate and evaluate whether it is the right time to buy, we can also let you know what actions you can take to really make a difference in your credit if it needs improvement. Having sold thousands of properties we can assist you in finding the best fit for you.
The professionals at Synergy Properties know the Spokane local Real-Estate market and have become experts at serving the Spokane community. Give us your your criteria and we will find a home for you. For more information contact us at (509) 624-4400 or visit us on the web!