Should you rent or buy?

By Richie Vraux

Should I rent or should I buy? There are many things to consider whether you rent or buy today.

Richie Vraux is a Real Estate
Broker/Realtor with Pine Tree
Realty of Maine in Windham.
SUBMITTED PHOT

The world has so many uncertainties so consider what will work best for you and your family.

Consider the 5-year plan: If you move around or travel a lot you might find renting to be a better option while those wanting to create roots in a single location will find buying to be a better choice. It is really a decision you want to choose wisely.

Consider the time and money needed to maintain a home: If you rent and something breaks or something doesn’t work effectively, you can call your landlord to fix it.

But when you buy a home, you will be the one keeping up the maintenance of your home. It is always good to set aside money for a rainy-day fund to have extra money when those issues occur, and yes, they always do.

Make sure you carefully weigh in on all the factors of renting versus owning.

Buying a home is a big commitment but can have many benefits. If you enter into a 30-year mortgage agreement, you have several tax benefits of buying.

Renting really has no tax benefits unless you work from home or similar work-related benefits.

Yes, you do have property taxes that need to be paid every year and don’t forget insurance to cover any loss you may have, but I believe owning has many more benefits than renting.

Buying a home is typically best if you have a stable job and plan on remaining in your home for several years. Renting a home provided more flexibility. However, it can also result in higher costs as housing costs continue to rise.

This is because rentals are usually short term and have a12 month window, or longer depending on yours or the landlord’s situation. But at the end of your lease, there is no guarantee the rents may increase. It’s always a crap shoot. There is no current cap on landlords’ fees, so you just never know.

On the other hand, unless you are in a variable rate mortgage or have a mortgage rate less than 15 or 30 years, it will stay the same until it is paid off. You will not have to pay taxes if you are renting, that is up to the landlord.

The cons of renting are your monthly housing costs are not stable year to year. You don’t get to build equity with each rental payment. The landlord gets all the rental benefits here. In the rental market you do not have control whether the landlord sells the property. At that point you are under the gun to find a suitable rental within a short period of time. Then you want to stay in the same school district for your children.

Renting is a good idea when you move out of mom and dad’s home, and you are off to college, or your job makes you move from place to place.

Purchasing a home is the American Dream people always want, but some people don’t want commitments and are certainly satisfied renting. Paying off a mortgage over 30 years is usually cheaper than renting but may not be the best choice for everyone.

Many factors in different markets affect affordability, making it difficult to determine which option will work best for you. Deciding to purchase a home is a personal choice that only you can answer.

If you need advice about choosing which way you should go, feel free to contact me. Richie Vraux is a Real Estate Broker/Realtor with Pine Tree Realty of Maine, 76 Tandberg Trail, Windham. Call him at 207-317-1297 or reach him by email at richardjvraux@gmail.com <