REAL ESTATE
by Jim Coleman, REALTOR®
REASONS TO BUY OVER RENTING
This column has suggested that for qualified, motivated buyers, now is the time to buy, citing the extremely favorable interest rates, the vast inventory from which to select, and the economic conditions encouraging consumer movement in the marketplace. Many of the buyers who should give thought and consideration to this proposition are renters. Let's review some important aspects of the process that point in favor of the renter being a buyer.
First, consider the general economy of the event. Buying builds equity. The buyer feels permanency, stability and a sense of neighborhood and community. The purchaser has the right and the freedom to change, modify, decorate or make improvements according to choice and taste, within guidelines of the law such as zoning, without having to get permission or worry about a landlord's rules.
The buyer/owner pays the property taxes, but also receives the benefits of tax deductions on income tax. Interest paid is deductable while rent payments are not. Depending upon the mortgage, there will not be monthly payment increases like there may be for increases in rent.
Obviously, there are some reasons people find it advantageous to rent. These include the freedom of change, to move on and be more mobile. It is usually up to the landlord to make repairs and take care of maintenance.
Renters may be subject to eviction if default on lease. Owners may be subject to foreclosure if default on mortgage.
The strong consideration here, however, is economic and for the buyer to receive the benefits of home ownership; hence, the encouragement for buying in this strong buyer's market. In many cases, payment for buying is lower than the payment for rent.
When tax benefits are considered, one often comes out well ahead financially at the end of the year by owning.
At this point, the renter should get with a trained Buyer's Representative and counsel with great sincerity and candor about the pros and cons, the benefits and disadvantages of ownership. Then obtain proper financial and loan qualification. Do not let anyone talk you into anything you do not understand. Obtain legal counsel if necessary. Understand the documents you sign. Make sure the steps you are taking will further your personal and financial goals. But again it is strongly encouraged that if you have the interest, desire and the financial wherewithal to buy, NOW is the time to take action and benefit from the current market.
St. George REALTOR® Jim Coleman is Associate Broker and Partner/Owner of ERA Brokers Consolidated. He Specializes in Residential, Investment and Commercial Real Estate, holding National Designations of Accredited Buyers Representative (ABR), Certified Residential Specialist (CRS), Resort and Second Home Property Specialist (RSPS) and Seniors Real Estate Specialist (SRES). You can contact him by e-mail at Jim@RealtorJimC.com. Call: (435) 674-0600; or write: Jim Coleman, 201 East St. George Boulevard, St. George, Utah 84770. This and other columns are available at www.RealtorJimC.com/articles.