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      Renting vs Buying in Vermont. When Does it Make Sense?

      When does it make sense to make the leap from renting to owning your own property? Forbes confirmed in March buying a home is now 38% cheaper than renting, with the gap closing as both mortgage interest rates and home prices rise. In many markets, buying beats renting until mortgage rates reach 10.6%. With rates currently hovering around 3.75%, still near historic lows, the advantage is clear.

      On average if you're planning to stay in place for a year and nine months, it's time to buy. Like any rule, there are so many exceptions. 

      Crucial is your ability to borrow. Even if the numbers make sense, you may not be in a position to quailfy for financing if your credit score has taken a hit or otherwise is lackluster. It pays to check your credit score and, if it's sub-par, take action to improve it and remove any dings or dispute any errors that are slowing you down, reduce your debt and pay your bills on time. fico.com lists three concrete steps, including pulling your free credit report. to take to figure out where you stand and what you can do to catapult.
       

      2nd are local rent levels vs the monthly cost of carrying a home including not just your mortage, but also taxes, insurance and maintenance which are easy to underestimate. Purchasing a home that fits your budge helps but equally as important is finding a home that is a value in your market. Comparing town assessed values to a likely purchase price can help as a barometer, but condition and stylistic appeal matter too. 

      3rd are your long term plans. Are your life, job and other circumstances stable? If you're anchored with a solid professional and social network and have roots in place, it can make more sense as you'll want to buy and hold for as long as possible to maximize the return on your investment. Often quoted is seven years before things start to look rosy, though market swings can skew that equation dramatically. The Wall Street Journal reports on an essential step in a successful life and realtor.org provides a field guide to buying vs renting.

      4th. Wouldn't it be wonderful to get that monkey off your back? Landlords can be overwhelming. Instead of having to wait to get those irksome issues taken care of, when you own you know it's worth keeping things up and you can execute promptly knowing it's your investment. Ever have a landlord crimp your style or nag you about conforming to a lease condition you wish you'd never signed or didn't read carefully enough? Set yourself free.

        

       

       Home ownership is, after all, part of the American dream. There's such a thrill in knowing it's your own castle and you've control over your own destiny. Landscaping, perennials, planting trees, masonry walls and stone gardens and other beautification become major pleasures, not to mention knowing that, if well cared for and improved over time, the chances are you'll end up getting back at last most of your equity if not all of it plus a handsome profit instead of all those lost rent payments that went up in smoke. 

       

      Maple Sweet Real Estate adds value and insight to better inform your real estate decisions.

       

      Text 802-793-1515 or call toll free 800-525-7965 

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      www.maplesweet.com

       
       Vermont Required Consumer Information Disclosure: please note Vermont real estate agencies represent Sellers directly or indirectly. Buyer representation can be gained for properties not already listed by Maple Sweet Real Estate. To better understand the merits of or arrange for buyer representation, please email or call for further details.
       

       

       

       

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