Should I rent or buy?
That’s a question that gets asked constantly and one that was just asked this morning in one of the Facebook groups I participate in. The original poster of the question is moving to the Charlotte area from out of state and wasn’t sure if they should rent first or go ahead and buy.
Here was the original question:
“I’m looking to relocate to NC this summer…
Right now, I can’t decide whether to buy a home or rent a home with a pool/amenities. Also, I’m looking for a great high school with a good girls basketball team!”
Someone suggested for them to rent until they gained familiarity with the area. They said,
“I wouldn't buy a home the first year. I think you should take the opportunity to get to know the area.”
That is advice that I can’t agree with. Here’s why.
As a REALTOR (and pretty much always an advocate for property ownership whenever possible), if you are able to buy a property, BUY IT. After all, home ownership for Black Americans is at a record low. In fact, the rate of home ownership for Black Americans is at the lowest rate since Fair Housing Laws were first passed in 1968.
As if that isn’t reason enough to purchase a property over renting one, there’s really not an advantage to renting first—you don’t have to stay there forever. The average rent in Charlotte, NC is currently $1,415.00. By renting for just ONE year at that price, you’ll spend almost $17,000 on housing—with nothing to show for it once your lease is up. With those same funds, you can put down a 3.5% down payment on a $300,000 home (which gets you a pretty nice home!) and afford to pay some closing costs!
BUT WHAT IF I END UP NOT LIKING THE LOCATION?
This is a valid concern, but one that can carefully be addressed. If you decide that you don’t like the location, you can rent the property to someone else (hello investment property!) and buy your next residence.
The kicker is making a good decision on the purchase—understanding market trends and knowing your numbers. This is where having a trusted real estate professional helps.
If you’d like any market information on specific areas or a knowledgeable agent to help evaluate a potential property as an investment property (I’m a former banker and also an investor), I’d be glad to help! Feel free to call or text me at 980-270-1470 or email me here.
So what do you think? When would you rent a property over buying one? Let me know your thoughts in the comments below!
Sharetha M. Holman is a licensed NC real estate broker with Apex Realty of the Carolinas, Inc, primarily serving the Charlotte NC and surrounding areas. Connect with me on Facebook, Instagram, and Twitter!
To start your real estate search today, visit Apex Realty of the Carolinas.com.