Should You Buy or Rent in Seattle
It’s never easy to decide whether you should keep renting a place or take the plunge and make that colossal investment in your property. If you keep renting, you pay a lot of money to live someplace, and in the end, there is no equity. You just move out and look for a new place to stay. You had been paying for someone else’s mortgage. On the other hand, if you decide to buy your own home, you will be paying for your mortgage and, thus, building equity. That’s great, but it’s not only the mortgage payment you will have to cover. There are other expenses. Many, many expenses you didn’t have to think about as a renter. Still, having your piece of property, a part of this world to call your own, is priceless. So, how does one decide? Should you rent or buy in Seattle?
The dilemma persists. There are many factors to consider, so that question will not be straightforward. What is more, there is no way to offer a universal solution. A lot will depend on your situation.
However, this article will break down the advantages of both options. So, you should be able to figure out what the best solution for your particular situation is.
Should You Rent in Seattle?
Owning a home is fantastic, but the fact is – many people rent their homes. And there are several excellent reasons for it. So, let’s take a look at some of the most prevalent advantages of renting in Seattle.
As a renter, don’t feel tied to a place. If you decide you don’t like a city or a state or need a smaller home (or a bigger one), you can quickly move out and look for a better setting. Also, if you are young and don’t have a family yet, you can easily find a place that will suit your needs and relocate without much hassle. In case of any sudden lifestyle changes, you can quickly pick up and move to a home that will satisfy your new needs.
If you need to relocate quickly, renting allows you more flexibility.
If you owned a home, you would first have to go through the sometimes lengthy ordeal of selling your home first and then buying a new one. When you rent, handling whatever life throws at you is much easier.
Although you pay the rent to live in a place and don’t build equity, it is a much more affordable option than owning a home. There are two main reasons why this is so. Consider the act of buying a home. Besides the price of the property itself, you would have to cover:
- Down payment
- Closing costs
- Agent’s fees
All of these expenses demand you have considerable cash reserves to pay upfront.
Then, there are the costs of homeownership that you don’t need to worry about as a renter. These are:
- Property taxes
- Maintenance expenses
All of that is your landlord’s responsibility.
When you decide to buy a home, you will most likely invest a considerable portion of your savings (if not all of it). Most of your money has now been sunk into that piece of property. It means that if you need cash quickly, it will be challenging to get it.
Therefore, besides flexibility in terms of physical location, renting allows you more flexibility with your finances.
Should You Buy in Seattle?
Renting looks pretty favorable for a good reason, and for some people, it is an excellent option. However, you can make a case in favor of homeownership. And a persuasive one at that. When weighing out whether you should rent or buy in Seattle, buying could be a better option, and there are some great reasons why it is so.
You Are Making an Investment in Your Future
The fact that it has been mentioned a few times already implies that equity means something. So, let’s underline this once again – buying a home is an investment. You build equity in your property, and your wealth grows. With every mortgage payment, the house is more yours, and you create more equity. When you pay your rent, you build nothing.
When considering renting or buying in Seattle, remember that buying means investing in something concrete.
Moreover, any investment you make in that property only helps it grow in value. Any improvement in the condition of your property adds value. So, if you decide to sell, you will probably be able to afford an even nicer house.
Renting Is More and More Expensive
The price of rent has been increasing in Seattle. So has the price of homes for sale. Since every mortgage payment goes toward building equity, purchasing a property appears to be a wiser option.
Also, rents have consistently increased over the years, and you can expect your rent to be 5% higher next year. But mortgage payments are always the same. You will have the same monthly expense for years to come. While you can always expect your rent to go higher, the same can’t be said for your mortgage. So, even if renting seems more affordable now, it doesn’t mean it will stay that way.
Owning a home comes with some great tax benefits. For example, you can deduce any expenses on your property from your taxes. You can even deduct the mortgage interest from your taxes in some cases. That’s another portion of your money towards your investment instead of taxes or another person’s mortgage.
Given all the benefits of homeownership, start planning your relocation on time if you decide to move to Seattle and buy a home. Start by looking for a good moving company. There are many long-distance movers in Washington, but just like purchasing a house, you can’t hire anyone on a whim. You have to be careful and look for reputable experts who will help you move into your new Seattle home without much stress.
Should You Rent or Buy in Seattle?
Let’s answer a few questions first:
- Do you have enough savings?
- Do you plan on staying in one place for at least five years?
- Will there be any significant changes to your lifestyle soon?
Your life situation will dictate if you should rent or buy a home.
If you have lived in Seattle for a long time and know this is your home, and you have enough cash reserves to cover the down payment and other expenses, consider what your plans are in terms of growing your family, for example.
The bottom line is, buying a home is a financially more intelligent decision in the long run. Since the rent prices are rising, it is even more true.
Nevertheless, whether you should rent or buy in Seattle is a choice you will have to make yourself. Consider everything you have read here carefully and put everything on paper. Also, work with a real estate agent. They will help you reach the conclusion you need. Ultimately, don’t rush any decisions, and you will be just fine!