Real Estate – Buying vs. Renting

In the world of real estate, buying vs. renting is a big leap. You may feel as though you honestly can’t wait to write your last rent check and start building your own equity. Friends will often tell you that you can “buy for the same price as renting” – or even less, now that the rental markets have gone through the roof in many U.S. cities. Another positive of owning is that you’ll be able to deduct more items come tax time – things like: mortgage interest, moving expenses, property tax, and charitable donations. But here are a few of the real estate buying costs to consider.

  • You’ll need a downpayment of at least 3.5 percent, but ideally 20 percent, to get a good mortgage rate.
  • You’ll also need to pay for a home inspector to look over a prospective home for you ($200-$400).
  • Factor in another 3 percent for credit check, title insurance, survey, escrow, and loan origination fees.
  • Most people buy homeowner’s insurance to protect your asset from weather or other property damage.
  • Utility costs are most likely to rise now that you’ll be heating, cooling and caring for a much larger space.
  • Then there is always the monumental task of paying for your own maintenance and upkeep… from leaky faucets and cracked shingles, to fences that need mending and driveways that need repaving.

Despite all the expenses associated with real estate buying, it is still very much the American Dream. There is nothing like having your own autonomous space and proudly declaring that you are part of the land-owning class! When you want to raise a family or have more control over your life, a home is a sound investment if you can afford it.

If you have any questions at all about buying Bethesda real estate, Potomac real estate, or in any community in and around D.C., please don’t hesitate to contact us, and we will be happy to answer as best we can.

About Rich Jones