The Age Old Question: To Rent Or Buy?
b"With Terry Story, 26-year veteran Real Estate Agent with Coldwell Banker in Boca Raton, FL
It always seems like such a conundrum: is it better to rent or buy?\\xa0 After 27 years as a real estate expert, Terry Story still has to answer, \\u201cit depends\\u201d. Not only is the real estate market local, it\\u2019s also changeable. Like the stock market, things go up and things go down, so you just have to know where you are in place and time.
Terry says that after about five years of rising rental rates, \\u201cwe're starting to see a surge of multi-family permits and buildings going up creating more supply.\\xa0 As you know, when you have more supply, the prices start to come down.\\u201d Not only will there be more choices for the renter, but many of these new rental properties will begin competing against each other which will further drive down the cost and create the option for more amenities than before.
For business owners looking for office space, however, Terry refers to Res.Inc which reported that US office vacancy rate had fallen to a seven-year low, meaning that prices will be on the rise in this area.
Back to the decision of whether to buy or to rent a home, Terry advises the third of all home buyers who are 35 years or younger to buy if they plan to stay in the home at least for two years. That two-year mark along with interest rates now hovering in the 3.6% zone almost ensures that buying is the better way to go. That being said, Terry cautions against making a purchase that is more than 28% of your gross pre-tax income on a monthly basis. Another factor to consider is the amount of hidden costs in being a home owner\\u2014taxes, insurance, lawn care, incidental maintenance, and repairs.
Going back to the question, \\u201cShould I rent or buy?\\u201d\\u2014after everything is taken into account and the numbers add up, at this time and in most places, it\\u2019s a good day to buy a home.
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Steve Pomeranz: It's time for Real Estate Roundup.\\xa0 This is the time every single week we get together with noted real estate agent, Terry Story.\\xa0 Terry is a 27-year veteran with Coldwell Banker located in Boca Raton, Florida.\\xa0 Welcome back to the show Terry.
Terry Story: Thanks for having me, Steve.
Steve Pomeranz: Many people are still renting, and home buying still is a challenge for many.\\xa0 What is going on with the rental market?\\xa0 Are prices or rents still rising as they were?
Terry Story: Yes and no.\\xa0 It's starting to lose its mojo.\\xa0 I like the way that sounds.\\xa0 Basically, what we're seeing, Steve, that the rents have gone up so much in the last five years\\u2014they jumped up about 20% nationwide during this five-year period of time\\u2014but we're starting to see a surge of multi-family permits and buildings going up creating more supply.\\xa0 As you know, when you have more supply the prices start to come down.\\xa0 These buildings aren't built overnight, so it does take time, and it takes a couple of years.\\xa0 You can even see in our own market.\\xa0 We've got lots of buildings going on, and that's going to make the prices begin to fall a little bit.
Steve Pomeranz: In your own community, if you see buildings going up, and they are rental buildings, know that that's probably a good sign if you're a renter.\\xa0 First of all, it gives you more options, and, secondly, there may be a time in some future where these projects will start competing against each other.
Terry Story: Yeah, like, for example, in New York, they're going to see 2.6 times more apartments in the next year.\\xa0 It's a historical average in Boston of 2.5 %.\\xa0 These areas should start to see the prices soften a little bit, or the developers or the community's offering more amenities, or giving you a free month rent, that sort of thing.\\xa0 It's by no means indicating that there's not a demand\\u2014the de..."