Should you buy or rent once your lease is up here in Phoenix? Yes, it’s the question that’s on the mind of everyone who pays a landlord. First, we all know how painful it is to hand a check over every single month, knowing that you’ll never see that money in the form of equity again like you would if you owned it. It can also be frustrating to watch everyone around you spend their weekends putting the finishing touches on their new home offices or relaxing DIY patios. At the same time, you’re not allowed to customize your living space at all. Does that mean it’s time to buy? It depends.
When deciding whether to rent or buy in Phoenix, you actually have to do two steps. The first is to do an honest assessment of the pros and cons of both options. The second is to dive into whether your finances make buying possible right now.
The (Honest) Pros and Cons of Buying and Renting in Phoenix
Your goals really determine pros versus cons when it comes to buying or renting in Phoenix. That means that there’s no universal answer about when it’s better to buy or rent. However, the overwhelming consensus is to buy if you’re in the position to buy. Let’s start with the pros of renting for people with some specific goals:
- • First, being a renter gives you the freedom to jump around if you’re not quite ready to put down roots.
- • If you’re busy, putting your landlord in charge of maintenance can be a relief.
- • You also don’t have to worry about property taxes.
- • If your goal is to just “test out” the city, renting offers some advantages over buying.
Of course, some of the “pros” of renting can also be points of frustration. That’s where the cons of renting can start to leave you feeling stifled. Take a look:
- • While you don’t have to handle maintenance on your own, you’re also at the mercy of your landlord when something needs to be fixed quickly.
- • While you don’t pay property taxes when you rent, the truth is that your landlord is actually folding the cost of property taxes into your rent.
- • You’re also unable to customize your living spaces.
- • Renting can be an unpredictable ride because a landlord can raise the rent, sell the property at any time, or change lease conditions when it’s time for renewal.
- • Of course, the biggest con of all is that you’re writing hefty rent checks that you will never see in the form of equity. You’re always paying your landlord’s mortgage.
- The big pro of buying a home in Phoenix, in a nutshell, is that you’re getting a living space that’s truly yours while simultaneously building equity for your future. For many people, the sense of stability simply boosts their quality of life. Here’s a look at some other pros of becoming an owner:
- • You’re one step closer to mortgage-free living with every mortgage payment.
- • Your home could potentially increase in value.
- • Homeowners get possible tax benefits.
- • If you have the down payment and savings in place, a home is often a better long-term investment with better market performance than other investment options.
- • You enjoy more stability and predictability in terms of your commute, local schools, and more.
- • You can customize your home to turn it into your own personal oasis without answering to a landlord!
While it’s easy to idealize buying a home as you fantasize about fun DIY projects, entertaining company in a beautiful yard, and growing a garden, buying a home comes with its responsibilities. You’re definitely putting more on your plate to enjoy this freer, more future-oriented lifestyle. Here’s a look at some of the “cons” of buying:
- • First, you’ll have to be prepared to pay closing costs.
- • You’re also taking on all future maintenance and repairs.
- • You’re making a commitment to stay in an area when you purchase. While relocating is harder when you own, there is always the possibility to either sell for a profit or rent your home if you decide to move away.
The answer for whether it’s better to buy or sometimes rent just comes down to numbers. Take a look at how much you’re spending on rent per year. You might be surprised to learn that your future mortgage payment is either equal to or less than your current monthly rent. If you’re close to ready with your down payment, there’s often no reason not to take advantage of the perks of homeownership!
Are You Thinking of Buying a Home in Phoenix, Arizona?
If you’ve fallen in love with Phoenix, make sure you have someone guiding you through the market to maximize the perks of buying! When you find your Phoenix home with Stevens Realty, Keith and Janna are here to help you discover properties that fit exactly what you’re looking for. Reach out today!
We are Keith and Janna Stevens, and we’ve been in the realtor game for years now. We’ve learned a lot along the way and want to share that experience with you. Enjoy our blog, and when you’re ready to buy or sell your home, be sure to reach out to us!