TO BUY OR TO RENT...
...IT DEPENDS...IT'S A LIFESTYLE CHOICE
It is not a new question, especially in this city of ours: How do you know whether you should buy or rent? The answer is not only based on financial criteria (which, of course, is a huge piece that we will discuss in the next newsletter) or the market, but also your lifestyle. You should always ask yourself important questions like:
· How would your daily, weekly, and monthly lifestyle be affected, if at all, after making a down payment, having a monthly mortgage, common charges (in the case of a condo or co-op), and taxes versus renting?
For example, would there be any change in vacations/ trips/ activities/eating or going out due to cost of ownership? If not, would finances be more stressful, less stressful or the same?
· Would purchasing a home change your neighborhood or affect your social contact? If so, for the better, worse or the same?
· Would the changes in your lifestyle, if any, be manageable and offset by the perks of ownership?
Now apply these thoughts to your future lifestyle goals and see if this impacts your current decision:
· How might holding off purchasing affect your future lifestyle?
Ø Your ability to retire
Ø Living in the location of your choosing
Ø Being able to afford to do the activities you will want to do
Lastly, why are you thinking about buying a home and how does that fit with where you are now?
Beginning your journey by answering some of these primary questions should give you some insight into your feelings and preferences and provide an indication as to what the right decision is for you at this time.
“To Buy or Rent…it Depends” is a three part series. “Financial Trends and Implications” and “You’ve Bought, Now What?” will be appearing in the following two newsletters.
About the Author:
Robin Tygar is a licensed real estate salesperson with Dwell Residential in Park Slope, Brooklyn. Robin’s own experience of renting, buying and selling throughout the country and in Manhattan and Brooklyn has made her passionate about successfully helping others through the real estate process! She is a graduate of Northwestern University and was a Director of business operations in financial services prior to making the move to real estate. She can be reached at firstname.lastname@example.org or 917.951.9090.