We receive a lot of questions from prospective homeowners asking whether it’s better to buy or rent in the current St. Petersburg/Tampa real estate market. Unfortunately, there’s no clear-cut answer that applies to everyone in every market. Following are a series of questions and some thoughts to consider as you’re making your decision.
- Are you ready to make a long-term commitment to a home for at least five years? If so, buying is probably your best option.
- Have you saved enough money for a down payment? If so, consider buying over renting.
- Do you qualify for a mortgage? Visit our Mortgage Calculator to get a feel for how much you qualify for based on mortgage term and interest rate.
- Are you interested in becoming a part of a community where you can put down roots and make friends? Again, buying is probably the best choice.
Florida Real Estate, Thoughts To Consider:
- As home values rise, the equity in your purchased home also rises.
- Mortgage payments are generally fixed while monthly rents often increase beyond what you might spend on a monthly mortgage payment.
- When considering whether to rent or buy, take a long-term approach. The longer you plan to stay, the greater the advantage of owning your home.
- Homeowners receive tax breaks by deducting mortgage interest and property taxes.
- Consider tapping your IRA for a down payment. Under current law, each individual may withdraw up to $10,000 as a penalty-free (but not tax free) lifetime credit for purchasing a first home. If you’re married, both you and your spouse can withdraw $10,000 for a total of $20,000! And your generous rich relatives are able to use their IRAs to make a penalty-free $10,000 gift to you for a first time home purchase.
- When selling your home, it’s possible that the capital gains you realize could be tax-free.
- There is a great deal of emotional satisfaction in owning your home.
For more information on buying vs. renting, contact Chris today at 727-642-9107.