Tag Archives: rent vs buy

Home Buying Process Class at Stella in Boston’s South End

Whether you are a first-time home buyer, a seventh-time home buyer, or an investor, this class is for you. Matthew Gaskill and Alisa Peterson, along with David Datz Esq., and Joe Smith from Guaranteed Rate will be hosting a class that will discuss the different aspects of buying property.

Matthew Gaskill and Alisa Peterson will be discussing the search and offer process, along with the current sales market. With the market being incredibly dynamic, we want to manage expectations, calm fears, and even help you decide if buying now is the right decision for you. Buying property now is not for everyone, but if it is for you, we want get you excited to get started on your search.

Joe Smith from Guaranteed Rate will be discussing the financing process. Financing is crucial in this market and Joe Smith will help you understand what is needed and what to expect.

David M. Datz, Esq. from David Marshall Datz P.C. law offices will explain everything from the legal standpoint of your real estate transaction and explain how we keep your interests protected.

Home Buying Process Class at StellaThe class will be at the restaurant Stella in the South End from 5:30-7pm on Tuesday January 29th 2013. We will have light refreshments and appetizers. We will have a Q&A session after our speeches, so please come with a pen, notebook, and any question you have about the home buying process. Please RSVP by January 24th by contacting Alisa Peterson at alisa.peterson@gibsonsir.com if you are interested in attending.

We are heading into another exciting real estate season and we want to get you as excited as we are!

Posted in Alisa Peterson, Boston Events, Buy Property, First Home, Investment Property, Matthew Gaskill, Real Estate Sales Market, Real Estate Tips, Realtor, Rent vs Buy, Things to Do in Boston | Tagged , , , , , , , , , , , , , , | Leave a comment

Should I Rent or Should I Buy Now?

The real estate market has been dynamic over the last few years to say the least. The dramatic highs and lows have left many wondering if they should rent an apartment or buy a home. Each option has its own merits and drawbacks and it is important to figure out what is the best option for you right now. Consider these arguments during your internal rent vs buy debate.

 

Should I Rent?

 

Renting is a great option for those that are still trying to figure out what their plan is. Many cities have wonderful neighborhoods with distinct flavors and personalities. Renting gives someone the option to try out different neighborhoods and find which is the best fit for his or her lifestyle. Buying is an investment synonymous with putting down roots and many people want to know their surroundings before choosing where to settle.

Renting offers short-term commitment. The most common lease contract is for a year-long commitment and there are also short-term leases that can be from 3 months to 6 months and Tenancy-at-Will contracts which are just month-to-month commitments.

The ability to test out an area with little commitment makes renting seem ideal until you realize renting also means you are throwing your money away. Renting does not build credit or equity. In fact, by paying your rent, you are paying someone else’s mortgage and building someone else’s equity and credit.

The tax breaks for renters are limited. In Massachusetts, renters can only deduct 50% of the rent they paid in a calendar year with the maximum deduction for rent being $3000. Meaning if your rent is more than $500, you are not going to see any difference.

Another drawback is rent is always going up! Especially in high demand cities with low vacancy rates. What you could spend to get a one bed in the suburbs could maybe get you a closet in the city. Then there are also the upfront costs.  Unless you are moving into a rental complex that only wants first month’s rent, most owners want at least first and last month’s rent. Some will ask for a security deposit and if you are using a broker you will need to pay for a fee. To rent an apartment, you need to have 2-4 months rent saved at lease signing. Then there is the expense of actually moving: the boxes, the moving truck, movers, etc.

After you have an apartment, the landlord can be an issue. With thousands of landlords and even more tenants, each with a unique personality, it’s not possible for every tenant to get along with every landlord. Some will be great and others not so great and there is no way to tell which one you are going to get until after you are already in your lease. In the worst case scenario, this can make for a very long year.

 

Rent vs Buy: Which Best Fits My Lifestyle?

 

Should I Buy?

 

Buying a home can be scary at first. With all the horror stories throughout the nation (foreclosures, short sales, underwater mortgages, money pits, the inability to sell, etc.), it is easy to think that renting is safer than buying. Buying can be scary because it brings responsibility and commitment. Basically, it means becoming a grown-up.

Fortunately there are more reasons to buy than there are not to!

Sales prices have fallen and mortgage rates are at an all time low. The combination makes housing affordability as low as we have seen in a decade and possibly as low as we will see for the next decade.

There are more tax deductions for homeowners than renters. Homeowners can deduct their mortgage interest, property taxes, and certain home improvements also qualify for deductions.

When you are paying for your own property, you are putting your money toward building your own equity and credit. You are paying off your own mortgage rather than seeing your money go to someone else’s pocket.

If you buy your property as a long term investment, it is like putting money into the bank. The more equity you build, the more you can borrow for future purchases, such as renovations  to your home or your child’s college tuition.

If it is the responsibility and commitment that is scary, then buy a condo. The size won’t be overwhelming. Plenty of condos are located in professionally-managed buildings or buildings that have property managers to handle repairs and maintenance. In a few years, if you decide to move onto something bigger, you can sell the property but you could also rent it out and have someone else pay the mortgage and build your equity.

To learn more about buying or renting property, contact the Realtors of Matthew and Alisa Group Real Estate.

Schedule a consultation with a Realtor

Posted in Apartments, Buy Property, Condo, First Home, House, Real Estate Sales Market, Real Estate Tips, Rent vs Buy, Rental Property | Tagged , , , , , , , , , , , , | 2 Comments