For a number of reasons, the answer is very clear – YES. But the ultimate CHOICE is yours. If you are in a position financially to buy than this guide will help you with the information that you should consider when deciding whether to Rent or Buy in St. Pete.
Obviously this question is different for students of The University of South Florida- although a number of parents work with the students to consider the benefits of purchasing a home in the St. Pete or Pinellas County rather than renting for 4 to 6 to 8 years.
Advantages to Purchasing
Every Payment you make is potentially increasing your wealth as it pays down your mortgage. When you rent, none of the payment is applied to your credit or wealth, it is just going to pay someone else’s mortgage or to their bank account.
Owning a home, and the stability of the payment on a fixed mortgage may work out better than the annual rent increases in the long run.
Having a mortgage with a fixed rate and payment will give you an overall peace of mind that is not possible for the renter that is always worried when the landlord will raise the rent.
When you buy a home – it is yours – you can paint it, put pictures up, remodel, redecorate and do it all over again next year. That is not possible when you are renting.
When your house does increase in value and your sell it, you probably will not have to pay taxes on the Capital Gains. The capital gain exclusion is a tax rule that allows married couples to exclude $500,000 or individuals up to $250,000 of profit. More info found here.
When you own a home – you may have the opportunity to draw upon the equity in the home to address potential emergencies that might come up. While we don’t advise using your home and its equity like an ATM, it is an option that renters will never have.
Try willing a lease to an heir. There is nothing to pass along.
As a renter, you can always have in the back of your mind that this is the week or month that your landlord decides to get out of the rental business and sell the home right out from under you.
Now there may just be reasons why you are not in a position to buy vs. rent.
If you are not set in your job or its location and are a wanderer by nature, settling down and being tied to one place may not be for you.
Owning a home is not just the monthly payment. It does require some upkeep and upgrading so that you don’t end up with the equivalent of shag carpet and paneling in the basement 20 years from now. And remember, you are the one that is going to have to mow the lawn and replace the toilet or pipes.
Property taxes can fluctuate. Lets be honest, they usually go up, so if you are on a fixed income or nearing that point you will want to include this occurrence into your calculation and consideration.
All that being said, renting may still be right for you. It is your CHOICE. We will never “force” you to buy a home. That being said, if you want to make a true comparison from a financial aspect, you owe it to yourself to work with a professional on The St Pete LUXE Living Group to find out exactly what you can afford and what is available on the market. Feel free to call us at 727-304-6344 to discuss your plans. We are here to help you make the right CHOICE.