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Is it Better to Buy or Rent House in Houston, Tx?

Own versus Rent

Owning a home isn’t right for everyone, but in today’s market there are more options for ownership than ever and in many cases ownership far outweighs the benefits of renting.  Let’s take a look at some of the top pros and cons:

Mobility:  Owning a place seems to offer less mobility and in today’s world mobility is important. However, with today’s online conveniences it’s easier than ever to turn your place into an investment, or at a minimum cover the carrying costs of ownership by renting .   In this case, your home appreciates in value, you build equity and your tenant pays down your loan.  Will there be a hassle in being a landlord?  There could be, but you can farm this out to a property manager to handle this for you.  So, reduced mobility is not necessarily a Con of ownership when you consider this option.

Security:  Owning a home provides a sense of security that you wouldn’t have as a tenant.  When you own a home your payments do not increase at the whim of a landlord, providing you a sense of security and financial stability.  Once you pay off your home, you have no mortgage payment, and no one can kick you out as long as you pay your property taxes and HOA dues.  Security also means stability versus moving from place to place every couple years.  This is a huge benefit of home ownership.  Owning a home provides a safe and secure place for you and your family to live and brings a sense of peace.

Freeze inflation: Owning a home freezes in your costs of ownership in a big way.  As prices continue to rise around you, the price you paid for your home and the financing you obtained never goes up; your payments usually remain fixed.  The taxes, and insurance costs can continue to increase, but there are also ways to keep these increases to a minimum.  A person that is paying rent of $1500 per month today will most likely be spending $2000 per month in 5-7 years from now.  A person that buys a home today locks in their costs of ownership.  A person who pays a mortgage of $1500 will most likely still be paying a similar payment in 5-7 years from now.

Equity:  the most obvious benefit of ownership is equity.  Traditionally, real estate values go up over time.  The loan you acquire today will be able to be paid down over time, and the value of your home will usually increase over time.  When you sell your home you will walk away with a check.  If it was your primary residence for more than two years there may be certain tax benefits that keep you from paying taxes on this profit.  Talk to your tax professional for details.

Costs of ownership:  There are costs to an owner that tenants do not incur such as repairs, maintenance, and improvements.  A homeowner should be prepared to save for such occasions as well as look into purchasing a home warranty to help reduce the costs of repairs.  This warranty can keep much of the cost to a minimum and will really help when it comes to the big ticket items.  Don’t go cheap on the warranty.  Get the better coverage to ensure the bigger items are covered.

Home ownership is a key to building wealth and creating a secure and safe environment for your family. has a unique network of professionals to help you in every step of this process.  If you have question or would like to discuss home ownership please register for our site or give us a call.

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