Are you moving and not sure if you should buy or rent? The Lawhead Team came across this article from fazhomes.com discussing the reasons why buying a home is better than renting:

7 reasons home buying a home trumps renting.

Historically, buying a home has been something people look forward to and use as a measure of success, but after the housing bubble burst, the thought of home ownership has made people wary. Fortunately, the market is recovering and we are happy to tell you that buying is coming back! No more doom and gloom; in fact, many analysts are saying that buying is now better than renting. Here is why:

1. Buying a home is cheaper than renting

Experts are saying that homes are at “historic levels of affordability,” where as rent is up an average of 5%. In nearly 60% of 257 metro areas surveyed, homeowners would reach a “breakeven point” in three years or less. This means if you stay in one place for more than three years, it is financially a better choice to buy versus rent.

2. Mortgage rates are at an all time low

In the past few months mortgage rates have reached record-breaking lows. If inflation increases, chances are we will never see rates this low again.

3. Unlike rent, fixed mortgages can’t go up

Rent rises and falls with the economy, but no matter what happens with the economy, you will always pay the same fixed mortgage rates. With all-time low rates, now is the time to lock yourself into a great mortgage deal.

4. Tax breaks for home owners

Homeowners are eligible for several different tax cuts, the biggest of which is the ability to deduct mortgage interest payments.  Homeowners can also deduct qualified expenses such as energy-efficient improvements.

5. Forced savings

Mortgage payments are a means of forced saving. Each month you are essentially putting money into a piggy bank (your house), and if you choose to, you can cash in on that investment by selling the house. In contrast, if you rent, you have nothing to show after years of paying rent each month.

6. A home is a security investment

Owning a home means you are in control. You can plan for the future and know that you will have a place to live. Renting means your living situation is in the hands of a landlord. Unfortunately, the landlord decides whether you stay or you go.

7. And of course, freedom

You can paint the walls, choose your service providers, and turn on the heat or AC whenever you want. Best of all, no more worrying about getting your security deposit back. You can live it up and maybe even drink red wine on your white carpet!

For some people, it simply comes down to whether or not you want, or need, the flexibility of renting. If you have been renting simply because you are nervous about investing in buying a home, the time is right to take the plunge and buy a home.

Read full article on the benefits of buying a home vs. renting: http://www.fazhomes.com/buying-a-home/to-buy-or-not-to-buy-7-reasons-home-buying-trumps-renting/

The Lawhead Team came across a great article about buying vs. renting.  Website, Zillow, explains for renters, buying a home pays off after 3 years on average.

Real estate website Zillow has a provocative data point for every renter thinking about buying these days: That move pays off after just three years on average nationwide.

The company, which lists for-sale and for-rent information on its site, has released a new analysis of what it calls the “break-even horizon,” comparing what it would cost to buy or rent the same home in a number of U.S. markets over time.

The rent-or-buy calculus varies widely depending on where you live according to Zillow.

In the combined Los Angeles and Orange counties, for example, the magic number is 4.3 years, assuming the buyer has made a 20 percent down payment. Buying wins out after only 1.6 year in the desert community of Banning, Calif. But Newport Beach, Calif., residents must wait 14 years for buying to make more financial sense than renting.

The Zillow analysis takes into account a host of factors potential buyers should think about when considering the leap, including the down payment, mortgage and rental payments, buying and selling costs, property taxes, utilities, maintenance costs and tax deductions. The analysis adjusts for inflation and forecasts home value and rental price appreciation.

Zillow senior economist Svenja Gudell said the data should help homeowners get a rough and immediate sense of whether buying makes sense in a particular area in relation to their financial situation.

“For a home buyer out there, it is really tough to get a good grip on the buy-versus-rent decision,” Gudell said. Although buying a home is a deeply personal decision, she said, the analysis gives consumers “a sense for, ‘Am I ready to make this decision?’ ”

The new take on the classic rent-versus-buy debate comes at a tenuous moment for the housing market. Many analysts believe that a housing bottom has been reached but don’t expect a return to the heady days of the real estate bubble. There is already some concern about the strength of the recovery, with home sales slowing in June as inventory remained tight and buyers paid higher prices.

At the same time, rents are rising, housing affordability is at record levels, and mortgage interest rates remain very low. These factors are prompting many renters to consider homeownership.

Stuart Gabriel, director of the Ziman Center for Real Estate at the University of California-Los Angeles, noted that the main lesson from the subprime mortgage debacle and the housing bust was that homeownership shouldn’t be pushed at all costs. Federal policy has been adjusted to support this new point of view.

“One of the things we have learned in recent years is, obviously, house prices don’t always go up, and even over the very long term in certain markets, homeownership may only offer a minimal return,” Gabriel said.

“What we have all learned is to treat homeownership as a bit of a dangerous animal. You know it’s not always good, and it’s not good for everyone.”

Things to consider when buying, particularly in a slowly appreciating market, include how mobile you will be, your financial situation, marital status, career goals and personality, Gabriel said.

Richard Green, director of the Lusk Center for Real Estate at the University of Southern California, added that in many regions buying has become increasingly attractive compared with renting. There are also non-financial reasons for buying.

“I can enjoy living in this house for the rest of my life, and nobody can throw me out of it,” he said. “You are consuming something, and you have control over it, and control has some value.”

Looking to stop renting and buy your own home?  According to Zillow it is better than renting and with the help of The Lawhead Team, the dream of owning your own home can now become a reality.