Buy a home now or rent? What’s the right call for you?
by
Jim Newell
Let’s see. Home prices are down from their peak a few years ago. Interest rates are incredibly low. Many, many sellers are very, very motivated. Why in the world would someone rent a home or apartment instead of buying a home? Well, heck. If you don’t want to take advantage of just about the most reliable investment you can make; or if you don’t want greater tax advantages; or if you don’t want privacy or to make your own decisions about your property; or if you simply don’t want “your own place,” then it makes perfect sense. (My word of the day: facetious.)
Not long ago, Trulia published the results of a study that details the cities in which it makes sense to rent instead of buy compared to the cities where it makes more sense to buy, not rent. Not surprisingly, Indianapolis – always one of the most affordable places in the country for home buyers – was on the list of places to buy, not rent. The value of buying a home in Indianapolis came in at #27 on the list, being described as being just a tick under “It is much less expensive to own than to rent a home in this city.” The only reason Indy didn’t fare better is that rents continue to be a tad more affordable than other cities on the list. But the low home prices here make up most of that difference.
There are a ton of calculators that help a typical person understand whether their particular situation is a “rent” or a “buy.” Try this. Or this. How about this. If these advise you to buy a home and you’re still on the fence, think about timing. This may be about the best time to buy a home – anywhere – in decades. Carpenter’s agents will soon be armed with The Six Reasons that TODAY may be the BEST TIME in 40 years to BUY a HOME. It’s a great opportunity to ask one about those reasons.
Rent or buy, it’s your call. But if buying a home is on the agenda you’d be smart to get cranking on the process. Define your budget. Start your search. Get pre-qualified. It’s time to get off the fence … unless the fence is in front of your own home.
Posted by: 
Jim Newell
