There are many factors to consider when deciding to rent or buy a home. Besides cost, you need to look at the need or desire for mobility, long-term commitment and the financial constraints of a mortgage.
But, generally speaking, if you plan to stay put for more than two years, home ownership would be recommended in the DFW market. There are no indications the market is slowing and interest rates remain low.
Apartment rental rates in North Texas are increasing at record rates, and the trend isn’t expected to slow down, according to market analysts. At the same time, interest rates remain at historic lows and home prices across the region are increasing at a steady, healthy rate.
Forbes magazine named both Dallas and Fort Worth best-buy cities for 2015, noting that homes are undervalued by 9 percent and 17 percent here, respectively. Investing in a home makes the best sense.
If you wanted to live in a $500,000 townhouse in Uptown, consider: With a 20 percent down payment, 30-year mortgage at 4 percent, $10,000 in taxes and 0.5 percent PMI, your monthly payment would be approximately $2,700-2,800 plus HOA fees. A majority of the payment could be tax deductible. Renting a similar townhouse might range $3,000-3,850 per month. I have clients purchasing these units when they can for an investment. With mortgage rates at historically low levels, it might be better to buy.
Ownership allows appreciation on your property, while renting provides no growth in value. Ownership enables tax deduction on property taxes, as well as on the interest component of monthly house payments. Ownership provides a sense of stability.
And investing time and money in a property provides a sense of gratification. With the historically low interest rates and Dallas-Fort Worth’s forecasted growth, now is the time to contact me and invest in your future.
Learn more about living in North Texas. Visit the Best Neighborhoods Site.
For more luxury homes throughout North Texas, see briggsfreeman.com. Click here to see the latest in real estate news. President and CEO Robbie Briggs independently owns and operates Briggs Freeman Sotheby’s International Realty with offices in Dallas, Fort Worth, Uptown, Lakewood, Ranch and Land, The Ballpark and Southlake.