Life is busy. We think that’s something most people agree on. So, when it’s time to make a change, people tend to deal with the issue that is right in front of them. And that’s great, because it means you’re ‘taking care of business.’ You handle one thing, then move on to the next. Decisions are made, things get resolved, and… (oh, hey – this is maybe one of the reasons that life is busy, huh?)
But there are times when dealing only with the question in front of you – and ignoring the peripheral issues surrounding it – can have long-term repercussions. Because some of the bigger questions – like, “Should we buy a home, or rent?” – need to be evaluated from many different angles. Failing to do that may end up affecting you financially in ways you never imagined.
“For generations, it was “the American Dream” that drove most people to take that big step to own a home,” explains Rick Piette, owner of Las Vegas-based Premier Mortgage Lending. “For many years, that was the goal. The ultimate threshold to be crossed (both figuratively and literally). But after the Great Recession a few years back, the goal posts got moved. Suddenly, many people felt owning a home might not always be the right answer. And to be fair, things have changed and even I will admit that it’s not always the right decision for everyone. But whatever the final decision turns out to be, it’s important that people consider many different factors in reaching the right one for their personal situation.”
Renting is more expensive than owning in the long run.
That is still true today in Las Vegas. Want to see for yourself? Try out this interactive Buy vs. Rent Calculator created by the New York Times. For example, if you’re planning to stay put for 7 years – and you’re paying more than $1,114 in rent – buying a $280,000 home at 4.5% interest is going to save you money. Let’s face it, with renting, you have no price stability (your rent can shoot up according to the whims of the marketplace…and they often do); and with a rental, you build no equity. Zero. Nada. Zilch. “That’s money out of your pocket every month that is helping someone else build equity and a firmer financial future. A great deal for them…but a real “ouch!” for you,” adds Piette.
How much are comfort and peace of mind worth to you?
“Once you know the dollars and cents – it’s time to think about all the other benefits that you gain by living in your own home,” Piette continues. For example, under the “comfort” heading, we can put these facts:
- Appearance and Comfort. You have complete control over your home’s aesthetics. No more avocado refrigerators or whitewash cabinets (unless you really like those!).
- Smart Homes. Many homes include advanced technology that is pre-wired in the walls. You can add security with lighting and video that you can control with your phone, if you choose. The possibilities are endless – much like the future of technology. (Try making those changes with a rental property.)
- Stability. You can make a “nest” for your family, and know that you can stay put, plant that tree and watch it grow. No need to worry about the owner renting your residence to a relative – and kicking you out to make room for them. (And besides all that – moving sucks.)
- Privacy. You are the one who says who can come and go on your property. Not your landlord.
- Energy Efficiency. A newer home has newer systems and appliances. And if you choose to add more energy efficiency to your home with solar panels or added insulation or more, not only will it save you money on utilities – but gives you a break on your taxes, too.
- Tax Benefits. There are deductions, write-offs, and other benefits that may apply to your situation, saving you money on taxes, adding to your bottom line.
“Of course, there are other considerations that most people need to take into account, because no two situations are the same,” Piette explains. “The size and age of your family makes a difference. Will you be downsizing soon when the kids go off to college, or need to make room for elderly relatives? How long you plan to live in a location makes a financial difference. There are job considerations: does your job require you to move at times – like those in the military? And in this day and age, even rising sea levels can affect your decision. Well, at least about where to buy a home, that is. (We don’t have much of that in Las Vegas, by the way.)
“The truth is, the smartest move – when you’re considering whether to buy a home or continue to rent – is to speak with a professional who knows the right questions to ask and can help you see your overall situation and make the best financial and life decision for you.
“That’s what we do at Premier Mortgage Lending. We help people get an honest understanding of their current situation, consider their possible future plans, and get a clear view of their finances as they pertain to obtaining a mortgage loan. Armed with the right information, they’re able to make the best and smartest decision for their own situation,” continues Piette.
“The truth is, owning a home is not always the right choice – for everyone, for right now. But if being able to own your own home is what you’re trying to achieve in your future, we can help you find the best way to get there sooner. And save money in the process, too.”
To learn more about the experienced professionals available to help you determine if owning a home is right for you – and to help you save money in the process with Premier Mortgage’s true “No Fee” Mortgage Loan, call 702.485.6600 – or visit the Premier Mortgage Lending website. To apply right on our website for a mortgage loan, click here.
Premier Mortgage Lending, NMLS #393282, is located at 701 N. Green Valley Pkwy., Suite 125, Henderson, 89074. The full-service lender is a member of the Las Vegas and Henderson Chamber of Commerce, Better Business Bureau and Southern Nevada Home Builders Association, as well as an affiliate member of the Greater Las Vegas Association of Realtors.