Tuscaloosa Realtor

 

Low mortgage rates and the increasing cost of renting an apartment have many renters now looking seriously at making the commitment to single family living.  There obviously are pros and cons for both, and a renter's decision comes down to a personal situation. Personal financial condition, future plans, and the local real estate market are just three of the factors that may influence a renter's decision.  The ownership versus renting equation has been in serious flux in recent years.  While renters don't build equity, they have greater flexibility in relocating.  Also, housing equities are not rising like they once were.  So the decision has fewer right or wrong answers than maybe it once did.  A renter basically must ask, “How appealing is the idea of ownership?”

If you purchase a home, you are making a commitment to stay there for at least a few years, so it pays to check out the desirability of neighborhoods carefully and weigh the prospect for getting a return on your investment if you decide to sell later.  You don't want a depreciating asset and there are no guarantees.  Examine local rental costs versus purchase costs for the local area.  What will be your total upfront investment for making a purchase:  down payment, closing cost, moving cost, fees for inspections etc., fix-up costs if any, plus any other costs incidental to making the deal.  You may face as much as 20% down payment alone.  And closing costs could run 5%. 

If you rent a property you typically must pay a security deposit and a month or so of upfront rent. This should be totally refundable. So the upfront costs of renting versus owning are significantly unbalanced.  But rents have been escalating in many cities and as your lease period terminates, you may face a big surprise. While single-family homes have been depreciating in many areas of the country, renting definitely doesn't build equity and you don't receive any tax benefits. Probably as big as any factor is the emotional feeling of ownership that comes with buying: the idea that it is yours to do with as you please.

Even if you invest in a home and then must leave it, the option to retain it as rental property makes buying more appealing.  While the property may or may not appreciate much in value, you are at least building equity by paying off the mortgage.  Also the tax deductions you that you receive are helping to offset the cost of ownership, and your housing payment will stay relatively stable. Taxes and insurance are the two unknowns.

These two unknown factors plus upkeep of the property weigh on the downside.  If you use it as rental, you are responsible for the roof, central heating and cooling system and other maintenance just as if you lived in it.  You are still tied to the asset and its responsibilities like paying property taxes.  And if it should become a negative asset, you may not be able to sell it as quickly as you would like.  The investment you have made in the property may not be readily available for another investment.  You should be able to make a relatively long-term commitment when you decide to purchase.  The idea of a fast turnover for profit simply doesn't work in many markets.   So your decision making should include careful thoughts about your long-term plans and expectations:  job and income situation, present and future family size, current assets, credit rating and access to financing.  How do you rate on a credit-worthy scale?  You may realize that you are better off to rent for the present time.  Each individual faces different conditions.  For greater information to help you make a smart decision, consult REALTOR.com.

Apartments in Area:

Tuscaloosa Apartment - Crimson Student Living

1 to 4 BDRM apartment in Tuscaloosa, AL from $650 to $959


Tuscaloosa Apartment - Fountain Square

1 to 2 BDRM apartment in Tuscaloosa, AL from $629 to $679


Tuscaloosa Apartment - The Greens at Tuscaloosa

1 to 2 BDRM apartment in Tuscaloosa, AL from $590 to $825


Tuscaloosa Apartment - The Lofts at City Center

2 to 4 BDRM apartment in Tuscaloosa, AL from Call for Pricing


Tuscaloosa Apartment - Parker 301

2 to 4 BDRM apartment in Tuscaloosa, AL from $450 to $730


Tuscaloosa Apartment - The Grand at Rum Creek

Stu to 5 BDRM apartment in Tuscaloosa, AL from $399 to $1059


Tuscaloosa Apartment - Campus Evolution Villages

1 to 4 BDRM apartment in Tuscaloosa, AL from Call for Pricing


Tuscaloosa Apartment - H.A. Edwards, Inc.

1 to 2 BDRM apartment in Tuscaloosa, AL from $575 to $1600


Tuscaloosa Apartment - Elements on 30th Ave East

3 to 4 BDRM apartment in Tuscaloosa, AL from $575 to $800


Tuscaloosa Apartment - The Bluff At Waterworks Landing

1 to 4 BDRM apartment in Tuscaloosa, AL from $630 to $1025


Tuscaloosa Apartment - University Downs Condos

1 to 2 BDRM apartment in Tuscaloosa, AL from $550 to $850


Tuscaloosa Apartment - The Links at Tuscaloosa

1 to 2 BDRM apartment in Tuscaloosa, AL from $590 to $825


Tuscaloosa Apartment - French Quarter

1 to 2 BDRM apartment in Tuscaloosa, AL from $725 to $945


Tuscaloosa Apartment - Houndstooth Condos

2 to 3 BDRM apartment in Tuscaloosa, AL from $610 to $825


Tuscaloosa Apartment - The Tower Luxury Apartments

Stu to 3 BDRM apartment in Tuscaloosa, AL from $940 to $2515



Tuscaloosa Apartments Guide

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