Friday, October 17, 2014

Ask and Agent: Renting vs. Buying

When people talk to me about buying a home, one of the first things they mention is how the monthly payment is so much more affordable than their rent payment...same amount of house for less money! And for the most part, it's is usually higher than a mortgage for the same house because the rent covers the mortgage plus profit. But only considering monthly payments is a very short-sighted proposition. Let me give you an example from my own personal life.

Last night, I got home before my husband. The baby went down and I had a whole two hours ALL TO MYSELF. I decided to treat myself to a long bath in our garden tub. I got out, nice and relaxed, and went downstairs to watch some TV before my hubby got home. I walk into the kitchen and...SPLASH! There was a huge puddle all over the kitchen floor. The upstairs tub has a leak in the drain line, which not only requires a plumbing repair, but sheet rock and paint. ARGH.

I just wanted to relax!!
Now the moral of this story is not that this wouldn't have happened if we were renting the house...this could happen to anyone. If I was a renter though it would be the landlord paying to fix it, not me. This repair is not so bad, but unfortunately repairs have no upper limit. AC's go out, fences blow down, roofs get the picture. And as an owner, YOU have to pay for the repair. Buying a house can quickly go from blessing to curse if you don't plan to have some cash in reserve for repairs that inevitably happen.

There's other factors to take into consideration as well, like taxes and insurance, resale, etc. If you are on the fence about buying vs. renting, or have questions about the costs of owning a home, feel free to email me at and I'll answer your questions.

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