Owning vs. Renting a Home

Date:April 23, 2008 | Author:Diane Tuman | Category:Real Estate

Today’s Wiki Wednesday Feature: Owning vs. Renting a Home

The mortgage crisis has sent the real estate industry into a tailspin with lots of potential buyers standing in the wings,For Rent waiting for the bottom to appear. In the meantime, we all need to live somewhere. What’s the option if not buying a home? Obviously, renting. Today’s Wiki Wednesday featured article, Owning vs. Renting a Home, dissects the pros and cons of each route. Which is the best thing for you? There are many factors, but two that jump at me seem to hold more weight:

  • Lifestyle — If you are happy-go-lucky, don’t like to mow the lawn or do maintenance, have an uncertain income and need flexibility, renting is probably for you.
  • Location — If you live in a vibrant real estate market where the home values have been consistently strong for decades, and you have the means and desire to own, then buying might be the right choice.

According to a recent article in the Seattle P-I, the rental market in Seattle is a vicious one, with rents at an all-time high and vacancies very low, which means if you’re a renter in Seattle, the pickings are slim and the costs are high. This is especially a conundrum if you don’t want to buy because while the rest of the country hurtles downward in double digit losses, Seattle is staying relatively strong with only a -0.3 percent change in the Zindex year-over-year. So, if you live in Seattle, there is a good chance you’re going to be pinched if you’re a renter or a buyer.

While the rents are rising in Seattle, just the opposite was happening in Phoenix, Austin and Miami, according to this MSNBC article “Apartment rental costs are all over the map.” Assess where you live and learn what rentals are going for and, of course, read the pros and cons of Owning vs. Renting a Home.

Fun links:

World’s most expensive rental markets (Forbes)
Analyze your rent rate(Rentometer)
Cost-of-Living wizard (Salary.com)

Ed: Wiki Wednesdays is a weekly feature that highlights helpful or interesting articles from the Real Estate Guide.