Blog Layout

6 Reasons to Rent a Home Rather than Buy

Oct 06, 2020

Historically, real estate is an outstanding investment. Over time, buying and holding property can multiply a person's net worth by several times. During a sharp upswing in real estate prices, investors can gain more equity than they earned at their profession that year. However, for all of its advantages, there are circumstances in which it is smarter to rent than to buy.

Here are six compelling reasons you may want to rent a home.

1. Target a School District

Parents with school-age kids may want the best public schools in the area. To- rated schools are often in higher-priced areas.

Usually, it is less per month to rent in a neighborhood than to purchase that same property. If a family cannot yet afford to buy in their target school district, they may choose to rent instead.

2. Maintain Flexibility

Long-term real estate is a tried-and-true investment. Buying and selling too quickly can be costly. If the market is relatively flat or declining, the transaction fees and interest payments can leave you with less cash for a down payment than before.

Buyers who are trying out an area gain a great deal of flexibility by renting. Renting gives them time to get to know the neighborhoods, explore the community, and enjoy some stability in their jobs before finding the right house to purchase.

Some people buy a house or condominium to live in short-term but keep it as a rental after moving. They either manage it themselves or enlist the care of a property manager.

3. Maintenance Done for You

As a homeowner, if the roof leaks or an appliance dies, you are responsible for fixing or replacing it. When you rent, the property owner or manager takes care of the upkeep. They hire contractors and pay for the repairs.

A reasonable annual budget for maintenance and repairs when you own is one to three percent of the purchase price. On a $300,000 home, that is $3000 to $9000 per year on top of mortgage, taxes, and insurance. A homeowner with the same monthly payment as a renter will pay several hundred or thousands a month to maintain property ownership.

As a renter, you are responsible for your monthly rent payment and utilities. Renters insurance is less per month than homeowner's insurance.

4. Lower Entry Costs

Buying a property requires both a down payment and a financial reserve. Even with a first-time buyer's five percent down loan, the money needed to purchase a $300,000 property would be $15,000, closing costs, loan fees, and three months of a reserve to cover loan payments.

The security deposit for a rental is often one to two month's rent or less. For a $1000 monthly rental, the money needed to move-in would be the first month's rent plus security deposit, or $2000 to $3000.

5. Improve Credit Rating to Buy

A buyer may have adequate down payment, but a low credit score limits their lending options.

Over the life of a large loan, a few interest rate points can translate into hundreds of thousands of dollars. It can be strategic to improve your credit score before proceeding with a purchase.

Rental owners care about your credit score, but cash savings and a stable job reassure them about your reliability. Explain your goals and outline your plan.

6. Share with Roommates

If an unmarried couple or group of friends wants to live together, renting can mean less hassle and expense. People live together for the company, to build a relationship, to save money, or to afford a more luxurious property than they could on their own.

Friends who buy a home together may conflict about settling their shares when one or two want to relocate. If one person owns the property and rents to the others, it can change or strain the relationship as the property owner is ultimately responsible, and his or her friends are renters.

Sharing a rental is more flexible and less responsibility.

Timing Makes a Difference

Many people dream of homeownership. It can be both a day-to-day comfort and an investment in long-term financial security. However, buying in the wrong place, at the wrong time, or for ill-conceived reasons can be unnecessarily expensive.

Renting offers flexibility, lower entry costs, and less responsibility. It may give you access to the location of your dreams or give your kids a better education. The wisest choice is the one that supports your circumstances, goals, and family.

< Older Post Newer Post >

Mail

Preview Rentals Blog

Spring Moving Tips

15 Mar, 2022

It’s finally spring, and the new year brings new hopes and goals, some resolutions and promises, and perhaps a new place to call home too! Moving can be very exciting but exhausting too. No matter what time of year or season you move, it can be a tedious process any which way. Be mindful of these spring moving tips, so you can have a worry-free and seamless move — and settle in at your new apartment in no time.

Photo of a mother and daughter blowing bubbles

Skagit Kid Insider: Your Guide to Local Events for Families and Kids

08 Mar, 2022

A concern families have when moving to a new home in Skagit County is engaging with the community. You may spend weeks or months trying to grasp how everything works and missing out on fun activities. The solution is Skagit Kid Insider . It is a website that collects information about all events in the county related to kids. Now parents don’t have to worry about missing events or finding opportunities for their young ones. They can find new friends, connect with people in the community, and have an easier time adjusting to a new place.

End of the Eviction Moratorium

04 Jan, 2022

Evictions are starting to become the norm again as Washington state begins its steady recovery following the pandemic. Previously, landlords were unable to impose any payments on tenants or evict them due to the difficulties of the past year and a half. Now, people are returning to work and settling into normalcy despite the virus. The state government deemed that evictions could return. It has led to a mixed reception from both tenants and landlords. Landlords can begin their business once again after losing over a years’ worth of rent. And while many have recovered financially, others are still struggling. However, the government believes that the economy will be affected significantly if this moratorium goes on any longer.

Helpful Tips When Moving to Skagit County In Winter

29 Dec, 2021

Are you moving to Skagit County, WA in December or January? Are you a little worried about what will happen to you or your family when moving during the cold winter month of December or January? Moving to Skagit can be a fun and adventurous transition, especially if you are a first-time here. But moving in the winter can be quite a bit more challenging than it is during other months of the year. Planning as much as you can is key. This means having a plan for your new residence. Grab your coffee and keep reading for some tips for a smooth winter rental hunt!

Tips for Moving During the Fall Season

21 Sep, 2021

Fall is arguably one of the best seasons to move. It comes right after summer and the expensive rental costs that come with the season, with most people settled in after trying to beat the back-to-school rush. Fall has better temperatures and more available movers. However, there are still a few challenges you need to prepare for during this season. Adequate preparation is important, and these moving tips will help provide a smooth experience.

Moving in the Summer? Here Are Five Handy Tips

16 Jul, 2021

Summer is often the season when many people choose to move as they find themselves with more time on their hands. After all, it is convenient to move when there’s no school to worry about and schedules are generally lighter for everyone. However, one of the biggest challenges of moving in the summer is the draining heat that comes with the season. There are several ways you can free yourself from a sweaty and tiring situation. Here are some moving tips you can follow to have an easier time with your move:

Low rental vacancy rate in Skagit County

24 Dec, 2020

Rentals are hard to find in many neighborhoods, from Anacortes to Mount Vernon to Sedro Woolley. If you’ve been looking and find it challenging, it’s not just you! People are staying put, and competition is high for available units. Skagit County vacancy rates are rock-bottom, even when compared to the rest of Washington. They have been below two percent since 2018, which is considered an acute shortage of rentals . The average for the state is about five percent.

Pandemic-Era Home Sales Higher than Same Period Last Year

20 Oct, 2020

Demand for homes is outstripping supply in Skagit County and surrounding areas. Sales closing values exceeded last year’s, although fewer total homes changed hands. For most homes, the selling price remained very close to the initial asking price.