Don’t Buy ! Rent !

June 30, 2008

I am a real estate broker/agent. I make my living helping people buy and sell Real Estate in the greater Phoenix and Scottsdale area.

The first rule of Real Estate 101 taught to new agents is to ask “Why Rent when you can own?”renting or home buying in phoenix scottsdale arizona

Traditionally, and especially in the past 10 years, following this home buying advice has proven lucrative and accurate.

However, the last 2 years has proven that this is not a hard fast rule to follow for every potential home buyer.

I have read so-called experts claim that if home prices do not rise, then you are doing little more than renting from a bank.

Since, as we have seen recently, real estate prices do not always go up, you need to follow a better guideline in your decision making than answering the age-old question of “Why Rent when you can own? and “renting is throwing money away!”

Here are the questions to ask yourself if home buying is right for you

  • Do you need the flexibility of renting? or can you afford to stay in your home for at least 5 years or longer?
  • Can you afford a 20% down payment?
  • Can you afford a monthly payment on a 30-year fixed mortgage?
  • ask your CPA … Does the tax benefit of home ownership offset a potential decline in home value?
  • Have you reduced other real estate debt before you add more on this home purchase?
  • Does a fixed monthly mortgage payment for the next 15 years outweigh the likely inflation of rents during that same time (called an inflation hedge)

These are broad questions that can have many variations for each individual situation. However, it is a good foundation from which to start your home buying process.

You do not need the Real Estate boom to enjoy the many benefits of owning a home.

However, you do need to the answer the right questions of whether or not real estate ownership is right for you and your family.

I always recommend you speak with respected industry professionals to get the best answers for your personal situation.

Here are a few highly respected real estate industry professionals :

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Copyright © 2008 By James Wexler, All Rights Reserved. *Don’t Buy ! Rent !*

Contact James Wexler (480) 221-8080 for all your Phoenix | Scottsdale area Real Estate needs

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Comments

One Response to “Don’t Buy ! Rent !”

  1. Why Rent when you can own a home, real estate | Summit Chatham Madison Morristown NJ Real Estate Blog, Web Savvy NJ REALTOR on September 21st, 2008 6:19 pm

    […] © 2008 By James Wexler, All Rights Reserved. *Don’t Buy ! Rent ! […]

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