"Rent or Buy?" is an age-old question that all of us have to deal with at least once in a lifetime. As previously reported, rents are expected to continue to rise in most areas in the US as demand for rental units will continue to exceed supply. Another prediction is that getting a mortgage will be easier this year. With a more stress-free mortgage application procedures, better jobs, and the expected rise in rent it sounds like buying a home is automatically the best options.
Just Recently, Zillow CEO weighs in on these two options. According to CBS, Zillow CEO Spencer Rascoff has come up with a book titled "Zillow Talk: Rewriting the Rules of Real Estate," in which he shared his opinion on buying, selling and renting homes. He has also offered his insight on current trends in the housing market as well as various real estate tips.
Rascoff has stated that the decision to purchase a home lies on a "crossover point" in which you don't want to rent anymore and you determine how long you want to stay there. Rascoff then said that on average nationwide, one should purchase a home if he will be staying there for at least two years. This factors varies for location for example, the crossover point in New York is about five years while in markets like San Diego, Los Angeles and San Francisco it is between three to five years. He added that buying a home is always a better option in Detroit because home values always much cheaper.
Rascoff's advice for those who want to buy a home is that "researching real estate agents is just as important as researching the homes" according to CBS.
On the other hand, rent may be the better choice if an individual is not ready to commit to the responsibility of paying off mortgage or if he or she cannot afford a down payment yet. A job that requires you to transfer from one place to another in a short period of time is also a good reason why renting is better. Therefore, the decision to rent or buy also depends on timing and location and both requires careful planning.
