Kane Dane
This is probably the biggest dilemma everyone has in the beginning. This is also a problem that has to be approached with a lot of studiousness and care.
Today’s article will give you some pointers to help you easily decide what is a better option for you. The article today will cover Austin Texas and based on some trends and situations we will help you speed up your decision regarding buying or renting an apartment here. When you decide you will need somewhere to turn to for the listings of free apartments and what better place than www.aptamigo.com?!
Having a place that you can call your own is always a good thing, and some people say that this should be something to strive for. With markets constantly fluctuating and with constant turmoil is owning an apartment a good idea? We believe that there are good reasons for bot and that the final decision will still be up to you and your desires.
Throughout the article, you will see a breakthrough of both sides of this decision and we will try to break down all the cost benefits, pros and cons as well as the emotional, psychological and other aspects that might bother you in this decision. We also understand that most things that go in deciding something like this go in personal preference, mobility and your finances. But without further due, let’s get started!
1. Rent reasons
There are around 4 reasons to rent and we will list those in order!
1. Down payment has become a thing
When looking for a loan you can get away with a loan that is as low as 0% down payment but most loans are somewhere in a ballpark of 3.5% down and if you do the math and buy a $300,000 home then that is a $10,500 plus closing costs. If you don’t want to do a mortgage and insurance then it around 20% down and that becomes a healthy chunk of change you need to consider. After that you have to calculate your first month’s rent, potentially your last, your deposit, potential pet fees and more you end up with $1,800 to $2,000 a month which ends up like $6,000 to get into the rental.
2. Easier to move
The typical lease is only for 12 months, maybe 18 or 24 but that is somewhat unusual and if you move around a lot then renting makes sense to you. Moving costs after a year of renting aren’t that big and you only have to move your stuff but there is not a lot of transaction costs, whereas when you buy a home you need to be in it for several years to get all the benefits of owning and in that period you accumulate a lot of stuff which also increases the cost of moving.
3. Cost ratio
The cost of buying and renting a house isn’t that different, especially in Austin. In some markets, rent can be much higher and it would make a lot of sense to just buy a home, but in Austin, these two things are not that far apart so the decision will be up to you and what you fancy the most.
4. Investment vs. Return
The capital you put in your home might not be as efficient as if it were employed elsewhere. But if you are not a money manager or a businessman/woman that can allocate capital on a godly level, then this info does not regard you. The sheer data show that most homeowners have a higher net worth than renters and those who cannot invest to beat the returns on whatever you’d be getting in the appreciation their choice would probably be to own. All in all, you have to know yourself and your abilities to make the best and the most educated decision.
2. Buy reasons
Here we will present 5 reasons to buy your next apartment in Austin.
1. Freedom
Every one of us would like to make our space the way we want and make it our little sanctuary. When you buy you can make all kinds of decision, you can paint the walls whatever you like, move the furniture around, knockdown walls you don’t like and so on. No landlords stopping you from making your apartment the way you want it and the way it feels good is something that goes as a huge PRO to buying your apartment.
2. Tax and appreciation benefits
If you are in an appreciating market that property is going to increase in value over time especially in the environment that we are in right now with limited inventory and money pumping this is something we are going to see in the future. What you also get in these situations is to write off the taxes and your interests that you pay on your note. These two are deductible from your income, meaning if you paid taxes on the $50,000 worth of income, but you paid $10,000 in tax and interest then now you only pay income tax on $40,000 which is a nice perk of owning a home.
3. Home is an automatic nest egg
While you pay the mortgage for your home it will involve principal payments that will then knock down how much you own on it and if you tend to find yourself in an appreciating market it will also add on to there. After the mortgage you will end up with a good chunk of change coming out of the other side and that money itself can sometimes be used as your ability to save for retirement. Now, it is also smart to save elsewhere if you can and not only rely on this. You can always borrow against equity and use that cash for some investments, just be careful not to over-leverage yourself.
4. Belonging to a community
Some people like the fact that they own something, a home in this case, and they love the notion that they belong in a community or a group. Getting involved in things around your home makes some people feel like they belong in a certain area and that that area belongs to them as well. This is a personal preference and a feeling on top of things that some consider being important for their overall wellbeing.
