(Newswire.net — October 28, 2014) Los Angeles, CA — Dean Graziosi is the leading real estate educator in America and has been doing real estate transactions for more than twenty years. He has become a household name for many people from his appearances on his late night television show where he delivered his Weekly Wisdom advice. Additionally, Dean is a multiple New York Times bestselling author who writes real estate investing advice and strategies. As a real estate educator he has thousands of students across the country who turn to him when requesting real estate advice. Recently, one of the most common questions he is asked is “Is it better to rent or buy a house?”
Dean knows the answer isn’t as simple as it seems. Even in the past when the economy was flourishing Dean was asked this question numerous times but given the state of the economy these days the decision becomes even more difficult for people. He often recommends that each individual weigh certain personal factors to decide whether renting or buying is the right decision for them. These factors include a person’s financial situation, their job, and personal preferences but many other things should also be taken into consideration to make the right choice.
The first thing Dean points out is that buying a home typically requires a twenty percent down payment. For a house that sells for one hundred and fifty thousand dollars a person would have to have thirty thousand dollars saved to out towards the home. That is a lot of money that many people don’t have. However, for people who can come up with a down payment mortgage rates are still historically low and home prices remain reasonable as the market bounces back from the recession. In most instances buying a home will end up being cheaper than renting a house. While cheaper might sound better it is not always the best situation for certain individuals.
There is a new rule that has become the norm for homeowners and is known as the “five year rule”. What this rule states is that a person shouldn’t buy a house unless they can stay there for five years or longer. Well with the unreliable job market many people are hesitant to buy a home considering they may have to find new employment before that five year time frame. Or what if a person is in a position where they can get relocated to another office or are offered a job with a higher salary? If they are renting a home it’s relatively easy to find a rental property in their new town and pack up and go. Conversely, homeowners are stuck trying to sell their home and still have to pay the mortgage.
Furthermore, Dean points out that many people are cautious when buying a new home because they may worry that the house will lose value. This happened during the housing bubble and many people either faced foreclosure or had to sell the homes at a substantial loss. For years renting was comparing to throwing money away but the truth is that buying a home is no longer the retirement savings vehicle it once was. Currently, America is a “nation of renters” and because of its popularity landlords have been increasing rent prices over the last few years. Dean Graziosi advises that every individual carefully consider the factors surrounding their situation. There is no clear cut answer to whether buying or renting a home is better than the other and depends on an individual’s circumstances.
Anyone looking for more information and tips on renting or buying a home can visit Dean on his Facebook page. By liking and following Dean a person can get weekly real estate advice and learn about the current market trends. It can be accessed here: https://www.facebook.com/deangraziosipage