Own vs. Rent: Which One is Right for You, Right Now? -- News on Florida Homes and Real Estate Business Times Florida business Newspaper. Homes and Lifestyle section.

Housing: Owning, Renting

posted 14 July 2006

Own vs. Rent:
Which One is Right for You, Right Now?

By Charles J. Kovaleski

With all of the recent talk about a gradual shift to the first buyer’s market in Florida in several years, many potential homeowners are taking pencil to paper to determine if this is the summer to finally buy a house. After all, inventories of homes for sale are up throughout the state, and sellers are become more eager to offer buyer incentives or to make money-saving deals for potential buyers.

But just because the market might be right for buyers, is it the right time for you, your family and your finances? Buying a home is never a one-size-fits-all process; finances aside, a whole host of personal reasons come into play when considering becoming a homeowner.

Are you ready for the American Dream of owning a home, or is it a good idea to rent for a while longer? When does it make sense to buy and when does it make sense to rent? Ask yourself the following questions before you start visiting open houses this weekend:

Do you plan to live in the same location for a long time?

If you feel settled into your community, have extended family near by and have decided this is where you and your family want to live for the next 20 years, buying and building equity is a probably good idea. If, on the other hand, you only plan to stay in your current location for under five years, or if you foresee moving with your job or your spouse’s job, consider renting a while longer. If there's a chance that you will be laid off soon or if you plan to leave your job, you might want to wait as well.

Do you prefer steady housing costs?

Except for rises in homeowners insurance, real estate taxes and maintenance costs, once you lock in your mortgage rate you can rest easy knowing that your monthly payments will be the same year after year. This long-term stability is reassuring to many homeowners who want to know exactly how much they will spend each month. As a renter, you are subject to the whims of your landlord and of the local rental market. As demand for rentals goes up, so will your rent—a phenomenon we are seeing in housing markets such as New Orleans right now.

Are you ready to be a handyman—or to pay for one?

When your roof is leaking or the plumbing is stopped up in an apartment, it’s the landlord’s problem. But when you own the place, it’s your problem. One mistake first-time home owners make is spending all their savings on the closing costs or down payment, leaving nothing in the bank to pay for maintenance and upkeep.

The decision to buy or continue renting really comes down to your personal preferences, and where you are in a particular stage of your life.

Consider renting if you want a short-term commitment and the freedom to move on a moment’s notice or if you don’t have the time or desire to maintain or repair your home and don’t want to pay property taxes.

Consider buying if you want to put your money towards something you own; if you want to build equity and take a healthy mortgage interest deduction each April 15; and if you like working around the house, renovating and making the changes you want to your own property.

CHARLES J. KOVALESKI

is president of Attorneys’ Title Insurance Fund, Inc. (The Fund), the leading title insurer in Florida and the sixth largest title insurance company in the country. Acknowledged as the Florida residential real estate expert, The Fund has been in business for more than 50 years and supports a network of more than 6,000 attorney agents statewide who practice real estate law. The Fund, based in Orlando, underwrites more than 300,000 title insurance policies for owners and lenders in Florida every year. For more information, visit www.fundhomeinfo.com.