I've found that many real estate agents (and even REALTOR® associations) view part of their job as convincing people to buy real estate. Well, can you really blame them? Most real estate agents traditionally work for the seller, and the seller's agent's job is to market and sell the house, so it makes sense for a listing agent to try to convince people that now is the right time to buy.
Well, you're not going to hear that kind of talk on this blog. As a former long-time renter myself, I am a firm believer that there are very good reasons to rent. Sure, you are probably helping pay your landlord's mortgage when you could be paying off your own, but don't let people make you feel bad about that. The way I look at it, there's a time to rent and a time to buy.
Here are my Top 5 Reasons to Rent (in no special order):
1. You like to move often. It's so much easier to give your landlord a 30-day notice than it is to put your house up for sale. Plus, depending on the market, it may not always be easy to sell your home. If you like to move often, you should certainly consider renting.
2. Your finances are shaky. Buying a home is a big commitment and a big investment. Rather than put yourself in a risky situation, why not rent a place below your means and save up money for a larger down payment and a rainy-day fund? This will help you obtain a smaller monthly mortgage payment and give you cushion for any unforseen events when you eventually buy.
3. You like your freedom and free-time. Renters have more flexibility to travel without worries and only need to call the landlord whenever there's a problem with the house/condo. Many homeowners spend a good chunk of their free-time taking care of the yard, small repairs, and general maintenance of their home.
4. You're new to the area or you just need some time before you commit to your next home purchase. It may be best to rent for a while until you're confident that you've learned the area well-enough to determine where you want to live permanently. Why rush into a home purchase?
5. Save money. In most markets, you can certainly rent for less per month than your mortgage payment will cost. Plus you don't have the down payment and closing costs to worry about (as well as property taxes and insurance). Usually your up-front deposit is refundable, so if you play your cards right, you can rent for much less than you can own.
All these are good reasons to rent, instead of buy. There's certainly a time to be a renter, so make the best of it! And when it's time to buy, we hope you call GLOBELLA Buyers Realty, your San Diego exclusive buyer's broker, to represent you for your home purchase.
Also see: Justin's Top 5 Reasons to Buy a Home.
Justin Gramm is the founder and principal broker of Globella Buyers Realty, your San Diego Exclusive Buyer Brokerage. He also writes this blog, "For San Diego Home Buyers."
Exclusive Buyer Agents do not list homes for sale and never represent sellers. They have no "inventory" to try to sell you. They can represent you in purchasing any home. They are specialists at representing buyers only on the buyers' side of the transaction. Exclusive Buyer Agents work to get buyers the best price and terms when they buy a home.
If you have excellent credit and plan to buy a home or condo in San Diego County within 90 days, contact Justin Gramm to hire an agent on your side of the transaction. Call Justin at (858) 437-2662 or E-mail.