MTI043: Buy vs Rent with Jason Hull

Buy vs rent – the constant debate! In this episode we look to the pros and cons of both sides and how to decide if the time is right to buy a home.

Topics covered include:

  • Benefits of owning a home- tax code, forced savings, psychological benefits, security and more.
  • Drawbacks of owing – costs, mobility, growth.
  • How to decide if you should buy or rent.  Including lifestyle, long term goals, expenses and location considerations for buying a home.

Resources:

 

Today’s Panelists

For a quick bio of each of our show participants, head on over to our panelists page.

  • Charles

    I’d like to talk about my situation before every listener decides to rent for the rest of their lives…

    We (my wife and I) rented in my area of Philadelphia for a year before buying a home around the corner, and I agree with that advice. We could tell the area was changing for the better, and deciding buying would be a really good option for us. We were renting for around $1100 and it was going to go up the next year (2 br, 1 bath). We ended up being able to knock $5k off the price for things that needed to be fixed in the house, and paid around $3k for the repairs. We pay the SAME AMOUNT on our mortgage (for a 2 br, 2.5 bath, twice as much SQFT) as we paid for the apartment, at a fixed 3.5% interest rate.

    We rent the other bedroom to friends at $450/ month (GREAT deal in our neighborhood). Other rental properties at the same size as our home in the area go for around $2,000/month today.

    So my point is this: Even though we’ve had to pay for repairs in our home, we are actually saving around $1,500/month by owning instead of renting the area we like to live in, and building a small amount of equity in the process. If you do it smart, and can have a plan going in, you can save a lot of money by owning vs renting. Just my 2 cents.