|Posted on December 31, 2021 at 3:50 PM|
One of the most difficult decisions to make is whether to buy a home or rent one. The real estate market in Austin has its ups and downs, and the prices constantly change. That's why we need to discuss renting vs. buying in Austin. Before you decide, you need to understand the market and figure out what is best in the long run.
Understanding the buyer/seller market
When it comes to buying a home, understanding the market makes all the difference. There are a few essential terms to look at:
• buyer's market;
• seller's market;
• comparative market analysis;
A buyer's market favors those who are making a purchase. The equity is lower, and you can find good houses at affordable prices.
A seller's market is the exact opposite. The price of the homes goes up, and you can make more money by selling a house. If you want to buy a home instead of renting one, the first thing to ensure is that you are buying in a buyer's market.
Finally, you also need a comparative market analysis. This step is essential both for buyers and sellers. If you find a house you want to buy, compare its price with other homes on the market in the same area. This will tell you how the cost of the property compares to others. If you find that the price is too high, renting might be a more suitable option.
The benefits of renting
To compare both options, we need to first look at the advantages and disadvantages. One of the biggest advantages of renting is that you have flexibility. You are not tied to a location, and you can always change it. We spoke with a couple of moving companies in the area to better understand whether more people are moving into a rented place or a house they bought. According to the experts at Heavenly Moving and Storage, many people are moving to rented apartments at top locations precisely because they cannot afford to buy.
Furthermore, you know exactly how much your monthly expenses are as a renter. Sure, the rent may go up, but that does not happen every month.
Another benefit is that you don't have to worry about major repairs. The owner handles all fixes around the house, as long as you do not cause them.
Are there any disadvantages to renting?
Potential evictions are one of the worst drawbacks of renting. It sometimes happens that the landlord decides to either find someone else or move back into their place. The rent can go up when you cannot afford it, which can be another reason for eviction.
Furthermore, you cannot choose your neighbors when renting. Whoever is in the building is who you are stuck with. That can be the luck of the draw, so have that in mind.
Finally, instead of paying rent, you could be paying your monthly mortgage for the new home. Many people say that paying rent doesn't get you anything. You spend all that money, and you are left with nothing in the end. It is better to instead purchase a home and pay off the mortgage.
Why you should consider buying a house
A house is a long-term investment. Just because of that, it is definitely worth going for it. We already mentioned how paying rent does not get you anything in the long run. Even though purchasing a home is more expensive, you are taking care of one of the most critical decisions in your life.
Sure, the market sometimes plays against your financial capabilities. However, there are ways to save up some money and get a good deal, even in a seller's market.
One of the ways is to find a real estate agent through a real estate referral company. Not only will you find experts for the area in question, but you can also get a rebate in the amount of 15% of the real estate agent's commission. That's an excellent way to reduce homebuying expenses.
Are there any downsides to buying a house in Austin?
The downsides always exist. However, they depend on how you look at the situation. For example, many experts claim that it is better to rent a home because the interest rates are currently high. While that is true, you never know when the rates will go down. And you cannot predict that the rates will not go up again. Waiting for the perfect conditions is a good idea, but it can waste a lot of time.
Another thing to consider is what kind of home you want to buy. For example, buying a home with unpermitted work may create difficulties in the future. Those houses are cheaper, but for a reason.
Inspect before buying
One way to solve many unknowns and make an informed decision is to do a home inspection before buying. People are often reluctant to purchase a property because they are afraid of making wrong financial decisions. For example, if you spend a lot of money on a home that you need to remodel top to bottom, you might regret making this deal.
Luckily, a home inspection takes care of that. If you are worried about whether you have found the right house or not, a simple assessment will make it clear.
Find qualified movers
Whether you decide to rent or buy a home in Austin, you will need movers. There are multiple benefits of hiring full-service movers, and one of the most important ones is that you don't have to focus on organizing your relocation. The movers will do all the heavy lifting for you.
Renting vs. buying in Austin - what is the verdict?
It is challenging to discuss renting vs. buying in Austin. There are a lot of factors to consider. However, one thing is always true. If you have a stable income, you should buy. There is no reason to miss an opportunity to purchase the home of your dreams. Opportunities are everywhere around you; you just need to find them. Do it with the help of the right people!
Written by: Lisa Roberts with US Moving Experts