Buying has several benefits such as building equity, potential tax deductions, and control over the features of your home. In the Austin area rent rates are so high that in most cases owning a home can cost the same. If you intend to live in the area for a few years, properties historically generate equity for a good return on investment- whereas in a rental you are not receiving a return on your investment. Lastly, buying a piece of property allows you to make the space your own. From paint colors to switching appliances, flooring, fixtures, and much more to make the space a statement of you. These personal and financial perks make homeownership desirable to most people.
Renting In Austin, Texas
Renting is a great option for some people with the right criteria to justify renting vs. purchasing. A few items that would put a person in the position to rent rather than buy include declining credit, not planning to stay in the Austin area for the next 2-5 years, if you may not have stable employment in the area, or simply do not want to take on all that comes with owning a home. Now lets go over these in detail. If you have declining credit that may result in future financial stresses that come with a owning a home. If you currently have bad credit, that may result in higher interest rates; Legacy Real Estate Group is happy to speak with you about credit repair programs to assist in making home ownership an option once you are ready and in the best financial place to do so. Since the Austin real estate market is rapidly increasing, it may not take as many years to achieve equity in a home. Therefore if you plan to stay at least 2 years you can take advantage of the capital gains with no tax, this means you are not taxed on any profit made from selling your home at a higher price than it was purchased at. Job stability is another factor in determining to rent or buy. If you rent, you have the ability to quickly react to a job loss by moving to lower monthly cost. As a homeowner you cannot react as quickly to job loss because the mortgage will still be there. Lastly, home ownership takes time, energy, and money. Before making the decision to purchase you must be prepared to handle unexpected expenses, interior & exterior maintenance, and caring for your home to keep it in good shape for resale.
Before finalizing your plans, speak with us for accurate information on the real estate market and accurate cost of renting vs purchasing. Only with accurate data will you truly make an informed decision!