Should You Rent or Buy in Oklahoma City
The argument of whether to rent or buy is a common debate among many. The traditional mindset is that purchasing a home is the better option. The reasoning behind this ideology is that a home is a great investment and after a few years, you will have grown on your investment. However, after the burst of the housing bubble, many people learned that purchasing a home is not always a smart idea. Further fueling the fire between the everlasting rent or buy debate. When moving to Oklahoma City, it is important to enter the market knowing what to expect and what your goals are when it comes to housing.
Deciding whether you should rent or buy when moving to Oklahoma City depends on several factors that are typically unique to your personal situation. However, we will help make the comparison between both options. Some of the benefits and negatives of each option are listed below:
- Renting a home gives you many options. You can move to a location and if you don’t like it, there’s always the option to easily move to another in a few months. Additionally, if you were to change jobs and had to relocate to a different city, it’s not an issue to uproot and move. Renting gives you plenty of flexibility for moving.
- Much like a leased car, renting a home or apartment can give the renter a luxury living space at a fraction of the cost. If perhaps you can’t afford the down payment for an upgraded home, renting is an option that allows a temporary to long term solution without the added responsibilities of home ownership.
- One of the most ideal and beneficial aspects to renting is the lack of financial responsibility of making home repairs. Be it an apartment or a house, the landlord or association typically assumes all costs of home and appliance repairs.
- You are forced to follow the guidelines your landlord or apartment complex has put in place. One of the unfortunate downfalls of renting is that you’re unable to abide by your own rules. This can be an inconvenience for those who have pets or enjoy loud parties.
- Rent typically increases every year, but your home remains the same. Although you cannot make any renovations to your home you may have to pay more for your home.
- At the end of your lease you are left with nothing, typically not even your security deposit. So, you will need to start over again. With home ownership, the major benefit is the return on investment. Anything you spend can and may help to improve the resell value of the home. For renters, there’s no claim to the property, which is a major downside when it comes time to move.
- The obvious benefit of buying a home when moving to Oklahoma City, is the ability to eliminate your housing costs once you’ve paid off your home. After your 30-year loan or whichever option you may choose, you are able to live mortgage free for the remainder of your life in that home.
- You can break even or even make a profit on your home. If prices increase after you purchase your home and it surpasses the amount you’ve paid in mortgage and other fees, then you will have equity in your home. When you decide to sell your home in a good market, you will be able to make a profit.
- Get a break on your taxes! That’s a sentence you don’t hear every day, but when deciding whether to rent or buy it is important to know that as a homeowner you will receive tax credits to offset some of the home costs you incur.
- As a homeowner, you will need to pay taxes and interest on your home. At any time during the length of your loan, the taxes on your home can increase.
- The money spent on your down payment, taxes, and other factors comes with an opportunity cost. This is money that is locked into the house and unfortunately earns no interest or dividends.- Home and appliance repairs. Another drawback with home ownership is the responsibility to take care of all damages. The home owner is solely responsible to maintain code status on the home and if/when things fall apart, the home owner can sometimes shell out large sums of money for repairs.