This has seem to be a debate for a while now. It has come down to personal preference on what is best for the individual, considering the circumstances. For instance, some may be in a position where they cannot get approved for a mortgage, so they have to stick to renting. On the other hand, some rather just rent a place and not be responsible for the wear and tear of the home or apartment complex. The exterior is always taken care of and the renter gets full access to all the facilities of the complex including: pool, gym, club house, tanning salon, dry cleaning services, & car wash. I have some clients who only want to rent, because they want the full use of facilities and not worry about the upkeep and maintainance of a home.
However, owning a home is the classic American dream. As of now, there are more home owners than ever before. Especially, with the low interest rates and variety of loans available for home owners. An FHA loan is a great option for first time home owners, where they only have to put down 3% to 5% on their new home. We all know that owning a home is one of the largest investments one may have. Therefore, when a buyer gets approved for a home loan, it is crucial that he or she hires an experienced realtor who knows and understands the market place. The new home owner will be looking to live in an area with home values increasing, the job market is strong, and the home is well built & energy efficient with upgrads. Thus, increasing equity for the home owner to have in one of their largest investments.
Considering the high demand of the real estate market in the DFW area, due to the increase job market and large companies relocating to Texas including: Toyota, Nebraska Furniture Mart, Texas Instruments, Fossil, Frito Lay, AT&T, State Farm, Southwest Airlines, American Airlines, Exxon Mobile, Kimberly Clark Corp., J.C. Penny, & many more. These large companies have increased the population in the metroplex, thus rising the demand for homes. We are now in a time where they're multiple offers on homes, because of the short supply of homes available. Some home buyers are even paying over the appraisal value of the home due to supply. This is also where an experience realtor will need to come into play for his or her client.
It is a great time to buy or sell your home due to the market we are currently in. Real estate is a smart investment to have, especially since renting prices have increased, and the demand for homes is at a high with multiple offers being bid on a home. An investor can buy a nice home in a highly desired area and either rent out the home, making a profit due to high rental prices, or he or she can fix it up with upgrades and sell it making a profit.
Being qualified for a home mortgage has been difficult for some, due to not having the credit score, debt to income ratio, job history, and income needed for the lender requirements. Therefore, the renter is stuck in a position where he or she has to continue to pay high rental prices, because they do not meet the criteria for a home mortgage. Basically, one can own a home and pay less to own of course depending upon the location and quality of home, or rent the same home and pay more monthly.
For instance, my wife and I were renting a nice two bedroom apartment, and each year they increased our monthly rent over a $100 dollars. We finally had enough and decided to build our first home and spend our hard earned money on something that we actually own. Plus it increased our credit scores being home owners and we had a great tax benefit as well.
Our home mortgage is less than when we rented. However, if we rented our home now, we could rent it for a great profit. This is why there are a lot of investors who are buying homes in highly desired areas and renting them out, because there are a lot of renters willing to pay the price. Even some of the ugliest or undesired homes are being rented and bought.
Then again, some people rather rent and not worry about the maintainence of a home, the insurances, taxes, or other expenses related to owning a home. Therefore it comes down to the individual and what he or she really wants for their families. For me, I enjoy being a homeowner. If I ever want to sell or rent it out, it will be a great investment.
You can have a great investment as well in the DFW market.
Lic # 0613409
IVY LEAGUE REALTY
Broker April Ivie
Brokerage Lic # 0597326