Money Matters

Renting Versus Buying - Which Is Right For Me?

We Make Families Feel At Home!

If you are like many apartment renters in the Maryland, Northern Virginia or Metro D.C. area, you're probably asking yourself, “ is it the right time to stop pouring rent money down the drain and buy a home? Remember this, only you can ultimately answer this question. As a potential homebuyer, you deserve a dedicated team of experienced Realtors to help you review your options. Buying a home for many is the single largest investment they will ever make. The process to purchase a home is very complicated and best left to experienced Realtors and we will assist you through every step of the process.

Is It The Right Time To Buy?

If your family is renting a Metro D.C. area apartment or home, now might be the ideal time to consider buying a home. The inventory of available homes is at an all-time high. That means you have an incredible selection of homes to chose from. Plus, favorable interest rates and numerous financing options make buying a home now a smart decision.

For some individuals and families, renting might remain your best option. Renting offers you the ability to move as often as your lease agreement will allow plus you seldom if ever need to pay for property repairs and upkeep.

Sold By Sisler Homebuying Tools

Obviously, your ability to make a mortgage payment versus paying rent needs to be evaluated. To help you easily see which is more advantageous to you – buying or renting a home – we recommend you complete the worksheet below. This worksheet will help you with this all-important decision.

The worksheet below filled with fictitious amounts as an example for you to see how the worksheet calculates the advantages to buying a Northern Virginia, Maryland or D.C. area home.

RENT

AMOUNT

Annual rent

$7200

Annual renter's insurance

$360

Annual rent increase (multiply average increase – usually 4% -- by payment and add that figure here)

$288

TOTAL

$7848





BUY

AMOUNT

Annual mortgage payment

$6000

Annual Mortgage insurance

$900

Annual payment increase

$0

Yearly property tax

$1200

Average yearly maintenance

$900

TOTAL

$9000

 


 


ADVANTAGES OF BUYING

AMOUNT

House appreciation rate (multiply the average appreciation rate – usually at least 4% -- by the fair market value or purchase price of the home and put that figure here)

$4000

Your state + federal tax (that you can deduct from your annual taxes)

$1200

TOTAL

$5200

Subtract the total from the Advantages of Buying table from the total in the Buy table. For example, $9000-$5200=$3800 total cost to buy versus $7848 to rent.

From this example, you can clearly see the financial advantages to buying a home instead of renting – not to mention the emotional benefits you receive with homeownership. Speaking of advantages to home ownership, below is a list for your review.

Helping Your Family Realize The American Dream

Aside from the inherent pride and emotional security of home ownership, there are many financial advantages to buying a home over renting. When renting a home, you’re paying someone else’s mortgage plus a margin of profit. The landlord is increasing their equity in the home while the only benefit you realize is the privilege of living in their house. Take a look at all the financial benefits to owning your own home:

  • IRS Tax benefits
  • Protection from rent increases
  • Your home serves as an investment
  • You experience appreciation values* (*depends on market conditions)
  • Your ability to borrow against the equity in your home
  • Provides you and your family a sense of security and independence
  • Your family will benefit from a having a place you can call HOME!
  • Ability to make improvements that suit your families needs while increasing your equity.*

(*Not all improvements yield the highest return on your investment. We address remodeling in the Home Center section.)

If you’re thinking about buying a home in the Northern Virginia, D.C. or Maryland area, contact, The Sold By Sisler Team today and we will meet to discuss your homebuying options.


Questions? Just Ask!