The First Time Home Buyer Dilemma: Do I Rent or Do I Buy?

Are you a first time home buyer and undecided on whether owning a home is right for you?

Are you getting conflicting opinions from friends, family and coworkers about the state of the Real Estate Market? Are you thinking it may be better to rent for a few years, and wait for prices to come down? It’s a very common concern among first time home buyers and let me tell you- you aren’t alone.

I get asked these questions a lot, and I must admit that I find it curiously ironic that people will ask me (a real estate agent who makes a living selling homes:-)) if the market is going to crash. It’s kind of like asking a car salesman at Honda if he thinks it’s a good idea for you to wait and see if the Toyota model coming out will be a better fit.

All sarcasm aside, let me start off by saying that if you aren’t ready for home ownership, or can’t afford it, or aren’t in a stable position of knowing where you will be for the next 4-5 years then by all means do rent. In fact, that is what I will tell you. However, if that isn’t the case and you do have the means, and you plan on staying put for at least 4 years then I think you’re crazy to rent. You see, real estate is an equity game and while everyone loves to talk about  market appreciation, they tend forget about the other side of the coin, paying down your debt and building equity instead of paying rent or what I like to call, paying someone else’s mortgage.

There are only 2 choices in real estate, paying your mortgage or paying someone else’s mortgage…

If I said that I could stop you from loosing over $90,000 by renting for the next 5 years would you listen? It’s amazing how many people don’t.

So do I think it’s a good idea to rent? Depends, but if you have the means and the time I think you’re crazy to rent, and I’ll stick by that. If you aren’t ready that’s ok, just understand what the real issue is because its not the market.