Raleigh Real Estate:
Should I Rent Or Buy?
The real estate market in Raleigh is on the rise, and there’s never been a better time to buy, which leads many Americans to the pressing question, “Should I rent or buy?” Many believe that the decision to rent or buy is purely financial, and while this is largely true, there are many other factors that come into play.
Buying a home can seem like the more expensive option, with a large down payment often required and varying interest rates, but this isn’t necessarily the case. Because these up-front costs are more spread out and down payments aren’t always required, buying a house doesn’t have to be a large expense. Plus, it has the advantage of being very predictable month after month, year after year. Where renting costs will increase every year, your mortgage payments will stay the same.
Maintenance and Fees
One definite advantage that renting does have over buying is maintenance. Where broken furnaces and burst pipes might be your landlord’s problem if you’re renting, they are most definitely your problem—and your expense—when the home is yours.
Interest Rates and Tax Incentives
Not sure if you have the credit to own a home? You might be able to qualify, but at a higher-than-desirable interest rate. However, higher interest rates do mean bigger tax breaks, so if you’re looking for a big return, the tax incentives associated with ownership are definitely better than those with renting (none).
Length of Stay
Are you ready to put down roots or still exploring communities? If you’re looking for long-term commitment to both a home and a community, home-buying is definitely the better option; homeowners tend to feel a much stronger connection to their community, and take pride in details such as the decor and customization of their homes. If you foresee a move in your near future, renting might just be easier.
The Bottom Line
Buying a home is an investment. Renting is an expense. Financially, especially in Raleigh’s rising real estate market, it makes more sense to buy—if you are looking to stay in one place for any amount of time.