Should You Rent Or Buy a New Home?

luxury homesA new house is the desire of many Americans it seems, with Zillow reporting that nearly half (48%) of buyers are looking for homes that have never been lived in. New houses may be the most desired in real estate unless you’re eyeing one of many luxury homes. But you don’t need to browse luxury homes to find a good one, there are all sorts of real estate options.

Instead of buying a home, consider renting one. Renting may seem less desirable than owning a home of your own, but there are a lot of benefits. One of which being that renting doesn’t require a down payment, just a security deposit. You also don’t have to worry about real estate taxes, or maintenance costs and repair bills.

Each one of these benefits has a tremendous upside, especially since they save you money in the long term. The lack of a mortgage on top of paying taxes on your property, and all the costs that go into keeping a home in good shape, all pay off.

But what about the reverse?

Owning a home is a great investment. Homes can appreciate in value with the more work you put into them. Adding things like a new roof, siding, doors, and other general improvements to the structure give a significant return on investment over the homes life-time. In fact, real estate is one of the many suggested paths people take when they have enough money to invest because renting out properties nets a good return.

There’s also the benefit of that home being yours to do with as you please. You can change all the aspects of the home, with no need to ask a landlord or to ask about restrictions. Do you want to add a new HVAC system? Go ahead. New bathroom? You can, it’s your home. Your property. You can’t do the same with a rented home, not without the homeowners express permission.

So while renting a home definitely has its benefits, so too does owning one. You don’t need to have a luxury home to have a home, you just need to make the one you do decide on feel like a home.

If you have any questions about renting versus owning a home, or just questions about real estate in general, contact us. We’ll be happy to help.

3 Critical Questions To Ask Yourself Before Buying A Home

homeWhen it comes to the idea of buying a new home, many people are not sure if it’s the right move for them. Buying a home is a huge investment. That being said, it’s critical to make sure you’re ready to take on such a challenge. And while most estate sales last for three days, Friday, Saturday, and Sunday, estate sales are not usually the best method to buy a home. If you’re considering taking the leap to buy a home, here are some important questions to ask yourself.

  1. If you bought a home, would you stay for at least five years?
    Buying is often the most efficient option if you plan to stay in your home for at least five years. Experts say that five years is the average time that makes you more likely to regain what you paid in transaction costs in addition to generating a return on your investment.
  2. Can you cover the extra expenses of owning?
    Many people miscalculate the actual cost of purchasing a home. Most banks want a 20% down payment, and while the down payment will inevitably be your biggest expense, it’s important to keep in mind that you’ll also need to cover 5% to 6% for commissions and another 1% for closing costs. On top of that, maintenance costs are recurring and can hit you with some hefty bills. This can be difficult to manage, especially if the costs are last-minute and unexpected, but experts estimate an annual maintenance cost of between 1% and 4% of your home’s value, depending on the age of your home.
  3. How secure is your job?
    Before you start looking for new homes, it’s critical to examine your current employment situation. How long have you been there? Is your current salary enough to afford a home? Is there any chance that you could lose your job due to the company going bankrupt or being sold? Are you planning on looking for a new job anytime soon? These are all critical questions to ask yourself before you make the plunge and buy a home. Because a home isn’t something you buy at the store and can simply return if you don’t like it. Once you buy it, it’s yours.

Ultimately, buying a home is one of the biggest decisions you’ll ever make in your life, and it’s crucial to do all the research you can. For more information about luxury real estate, contact Stony Brook.