Rent vs. Buy

Choosing to rent or to purchase a property is a question many are faced with, perhaps a question even current home owners are debating. Depending on circumstances a decision could be made from an emotional standpoint, maybe pure and simple economics outweigh short term wants and needs. Setting roots in a community where your kids could attend school and develop long lasting friendships may trump having additional cash on the sidelines to grow your business or experiment in various investments.  Perhaps the idea of renovating, decorating and landscaping a home for friends and family to enjoy may outweigh the flexibility you may have to scale up or down your standard of living in a rental scenario.

From an economic standpoint there are several ways to approach this question.  You could choose to rent your personal home while investing in real estate slated for rental due to numbers making more sense for a solid return on investment.  Asking yourself how long you may stay in newly purchased home may not make sense if the cost of selling in a few years will likely not exceed the appreciation of the home’s value through the term of your ownership.  Understanding how your mortgage is structured with respect to the interest paid and the principle being paid down could answer this for you if you just aren’t sure in the short term where your life is heading personally or professionally.

Throughout history, one thing is undeniable, much wealth has been accumulated by those who invest in real estate.  Outside of the volatile stock market it may be one of the only truly accessible hedges on inflation there is.  You can be assured that by owning something tangible you will not be left behind throughout the world’s inflationary periods, and that you will never be in a place where the monetary requirements to purchase will rise above your capacity to invest.  The choice is personal, but the Rose Calvelo Team is here to discuss a variety of scenarios with you.  We are here to enable you in making a decision that is not only fiscally prudent but will leave you with a sense of peace based on the understanding that your present and future goals are represented. 

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