Before You Sign That Lease…

It’s a familiar moment: you are about to enter into an important agreement, and as you lift the pen to sign your name, you pause. Your pen hovers over the Signature line for an extra moment as you register how important this will be in shaping your future…

When it comes to home rentals in our area, just such a moment occurs when you are about to sign the next year’s lease agreement. Local rentals largely echoed the national trend to higher prices and tightening supply, so the number of dollars on the bottom line can make that hesitation linger a bit longer than before.
The fact is that the local housing situation today is vastly different than it was just a couple of years back. Especially for anyone long accustomed to local home rentals, it’s worthwhile to re-examine some major factors that point to the best housing solution. Three of them have to do with finances, timing, and lifestyle. 

* Ownership can offer significant financial advantages. Tax savings are usually the standout factor: if you can deduct the interest you pay on a home’s mortgage, you stand to save that interest amount times your tax rate – versus (just say goodbye to it!) your rental payment. Maintenance and real estate taxes have to be considered as an added cost, but homeowners also stand to benefit from any increase in the value of their home. The aftermath of the epic slide in housing prices finds us currently situated near the first part of the ‘buy low, sell high’ truism. There are no guarantees when it comes to investing, but despite large dips during recessions, most houses regain that lost value -- and more -- during economic booms.

* Record low home mortgage rates combined with the dip in home prices have green-lighted this summer for anyone waiting for the timing to be right. Local buyers are not only finding homes at affordable prices, but are also paying historic lows on amounts borrowed. Lately we’ve been reading about mortgage rates reported as low as 3.4% on 30-year loans! 

* Finally, there are all the intangibles that come into play. Local rentals certainly alleviate some of the effort involved in caring for your own property, but on the other hand, it’s tough to put a price on the value of finally having real control over your living situation. Any tenant who has been uprooted when the landlord decides to sell or move back in knows the kind of upheaval that results from an unexpected and unwanted move. 

Sometimes home rentals offer the best option for a family, but it never hurts to run the numbers. Market conditions have rarely been as ideal as they are right now for area home buyers -- and I’m here anytime to go over the latest figures if you would like to take a look!