Deciding Between Renting and Buying in Phoenix, Arizona

Owning a home in Phoenix seems to be every Millenials dream nowadays but is this the right move for you? The desire to move to Phoenix is no surprise as residents enjoy the warm weather, vibrant nightlife, and booming economy. 

Now the next big decision is, “should I buy a home in Phoenix or rent it?”  

With rent getting more expensive even before 2020, deciding between buying or renting is a little fuzzy/ After all, the amount you pay for rent is nearly the same as you would pay for a monthly mortgage installment.

Let’s consider some factors you need to make an informed decision.

How long are you planning to stay in the same place?

Buying a home makes sense if you plan to stay in the house for more than five years. Renting may be a better decision if you value mobility. This situation may apply to you if a career move is in the pipeline for you, but it will likely require moving to another state.

If you decide to buy, selling your home after a few years isn’t a good idea financially since you’ll be paying more closing costs and renovation expenses if you want to sell for a profit.

Compare the cost of renting versus buying.

Renting may be cheaper than buying when you factor in the upfront costs, including your down payment, moving expenses, closing costs, renovations, and home maintenance costs.

However, buying a home is more affordable in the long run. Plus, you can also build equity. There is also a chance that you can make money when you sell because homes almost always increase in value.

With rental prices in Phoenix constantly rising, you’ll want to talk to a Phoenix mortgage broker asap to explore your options. 

Consider the risks of renting and buying.

There are risks when you rent or buy that you need to consider. If you decide to buy and sell your home sooner than planned, you may not be able to recover the closing and renovation costs.

There are also home maintenance costs that you need to add to your budget to keep your home in tip-top shape. 

On the other hand, renting takes away your chance of building equity wealth. Rental prices increase yearly –it’s just a matter of how much. Plus, there’s less housing security. Your landlord could decide on your next lease renewal to only offer a month-to-month lease. Property owners can also change, making it a risk that you’ll be stuck living in a place that’s mismanaged and unpleasant. 

If you decide that buying is the right move, Castle Rock Mortgage can help.

Deciding between renting and buying depends on your current financial situation and long-term plans.

If you are ready to become a homeowner, you can get started by reaching out to our loan officers at Castle Rock Mortgage.

Send us a message or give us a call today.

 


* Specific loan program availability and requirements may vary. Please get in touch with the mortgage advisor for more information.