Should you rent or buy? The Orlando real estate market offers the best of both worlds. If you are looking for a home for sale, you will find anything you are looking for. If you are looking to rent a home, short term or long term, you also can find anything you can imagine. So whether you rent or buy in Orlando, this decision must be based on several factors, including:
How long you plan to stay?
If you’re not going to keep the home for several years, the transactional costs of buying and selling can wipe out any buying edge.
Do you have cash for closing?
It’s not easy today to find banks willing to lend more than 80% of the cost of a home. That means buyers will have to come up with 20% down, plus closing costs. On a $300,000 home, that’s $60,000. This is not easy for many home buyers.
Can you can cover all the costs of owning the home? In addition to the mortgage, there are property taxes, hazard insurance, heat, utilities and regular maintenance.
Can you can claim the tax advantages of homeownership?
Mortgage interest is deductible and can save a lot on taxes. Mortgage interest comprises almost all of the monthly payment in the first few years of the mortgage loan. So this deduction can be huge. Also, married couples can earn up to $500,000 tax-free when selling a home at a gain. Singles get $250,000.
Other Factors
Buying a house isn’t strictly a financial decision. This may sound simplistic, but first and foremost you should find a neighborhood and a house that you just like. Moreover, you should check on the sales price trends of homes in that neighborhood. If it looks like the area is declining in value, then avoid commitment. You’re probably better off renting. Finally, don’t forget that even with the tax-breaks of home ownership, you will still be incurring out-of-pocket costs that you wouldn’t encounter as a renter from the cost of ripping down wallpaper to repairing a leaky roof. So, before you buy, estimate how much those costs will be. After all, you don’t want to live hand-to-mouth even if it is in your own home.
Is emotional satisfaction important to you?
We mentioned that buying a house is not always a financial decision. It frequently is an emotional decision. Having a place to call “yours” and to call “home” is often what the american dream is all about. For good or bad, a home that we own tends to define us. Having your own home allows you to decorate and remodel your home to fit your personality. Renting does not always allow this
So whether you want to rent or buy, you will have plenty of choices for each in the Orlando real estate market. Contact us today to learn more about your options.
