Renting vs Buying Phoenix Metro Area

Where you decide to live and whether you decide to buy or rent are large lifestyle decisions. We break down some of the top reasons for each option. 

REASONS TO RENT IN PHOENIX

• Bad Credit. Maybe you need time to rebuild your credit from a bankruptcy, foreclosure or divorce.  These are all large lifestyle changes that can impact your credit and while renting you can work on re-building.

• No Maintenance Expenses. Perhaps right now your time is tight so you would rather have someone else be responsible to fix the leaking faucet.  With renting you call the Landlord for these issues.

• Job Uncertainty. Are you between jobs, or maybe thinking about switching soon. Being a renter allows you the freedom to do so. Especially if you are on a shorter lease agreement, or even a Month to Month.

• Which Neighborhood Is Best? Perhaps you are new to the Phoenix metro area.  If so, it is nice to have some time to find the right place for you and renting allows you to have that time before settling down some roots.

• Big Life Changes. As we all know, you can’t predict your future. We do our best to plan it out, but it doesn’t always turn out that way. Being a renter allows so much more freedom and can be a much-needed relief while you’re dealing with some bigger things in life.

REASONS TO BUY IN PHOENIX

• Decorating Control. As a renter you really have no control over things like paint & carpet color but of course once you own a home all of those decisions are up to you!

• Equity. When you have a mortgage, you increase your degree of ownership in your home with every payment. A good general rule is that if you plan to stay in your home for at least five to seven years, the costs of owning the home are more likely to be offset by accrued equity and increased housing value. If interest rates drop, you have the option to refinance your mortgage at a better rate. When you pay rent, you are actually paying your landlord’s mortgage and adding equity to their bank account.

• Tax Deductions. Being a homeowner you can deduct mortgage interest along with your property taxes. Renters do not get this bonus! Also, if you meet certain requirements the IRS won’t apply “capital gains” tax on your profits when you sell your home. In addition, those who work from home may be eligible to take deductions for their home office and a portion of utilities.

RPMWV Phx offers full service Phoenix Real Estate & Phoenix Property Management services.  For additional information you can contact us at info@rpmwvphx.com or 623-748-7800.

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