Real estate is a large investment, which is why you should consider a number of things before you decide which option is best for you. Unfortunately, there is no easy answer to the question, “is it better to rent or buy?” You will have many factors to consider—your finances, your neighborhood, your age, your future plans, your lifestyle, just to name a few.
Owning your own home is part of the age-old American Dream. Of course, owning your very own home comes with a lot of pride and satisfaction, but you will also want to make sure you are prepared to take this step.
One simple way to think about making this decision would be to take a look at potential home prices and run through the numbers as a scenario. As an example, say you are looking at a home that is $450,000 with 20% down, and a 4.02 percent rate on a 30-year mortgage. Then you have to consider how long you plan to stay. If you plan to stay for 10 years, you’d have to find a rental for $733 per month to make renting a better scenario. If you are in a position where you know you will likely be moving in the next year, renting is likely the better option. There are many nuances to this argument, however, including if you decide to rent out your home. Regardless, if you are ready to make Tulsa your home long term, purchasing may be the best option!
You also want to make sure your finances are in a stable place. If you have too much student loan debt, it may make it difficult to have enough money for a full deposit on a home.
When you are ready to start looking to buy a house, be sure to think about how much owning a home can cost. In addition to the mortgage, you will have to think ahead for property tax, insurance, potential repairs, Homeowners Association fees, furnishing your new home, and more.
On the flip side, homeownership has so much to offer. With each payment you make, you are one step closer to owning the home in its entirety. While when you rent, the money is gone and not building towards anything. The mortgage allows you to get closer and closer to full ownership and a future with no payments!
You also have much more freedom and flexibility to customize and renovate your house to fit you and your family. Goodbye, gray carpet and hello, brand new hardwood floors! When renting, you likely will face rules about pets, painting, or even nails in the wall. When you own the place, you are free to make it look and feel the way that makes you the happiest.
Your home will also likely appreciate over time. What you buy today will likely sell for more money down the road, if it is kept in good condition. Especially in a city like Tulsa that is expanding and growing more desirable by the day!
In 2011, Time Magazine featured Tulsa as a city with a price-to-rent ratio of 11, indicating that it is significantly cheaper to own a home than to rent one. Based on Zillow’s market forecasts, Tulsa home values have increased by 1.3% in the last year. Tulsa’s real estate appreciation rates have been tracking above average for the last 10 years. At 15.72%, it is ranked in the top 50% nationwide. Realtor.com ranked Tulsa as one of the top 10 housing markets in the United States in 2018.
If you are ready to make the jump into buying a home, reach out today so we can start finding your dream house!