To Buy or Not to Buy

No matter the market, we are always perplexed by the decision to buy or to not buy real estate. If it’s the decision between renting and owning, we weigh the costs of the purchase against the costs of maintenance. If it’s the decision to invest, the balancing act of tax advantages against return on investment plagues our thinking process. No matter our situation, we should be seeking advice from our trusted advisors. Who do you trust to help you consider your options? Where are you getting your information?

I always start my decision making process by understanding my terms. By acknowledging these fundamental steps in your decision making process, you can avoid being swayed or distracted by erroneous data and information. You can make valid analysis of your options. We can understand the basic differences between renting and owning, but how is rental income taxed differently than owner occupied real estate?

How ownership is taken and how the property will be used must be considered before any transaction decision can be made. Investment property does not meet all loan qualifications. Rental properties are taxed differently. Married couples may buy property to own separately yet state laws may negate the terms of the contract if the right terms are not clearly defined. Some people will not buy a house with a contract. This is an interesting situation that does come up from time to time. I personally will never sell a home without a contract. This protects the buyer and the seller in full disclosure of their obligation and it helps define the terms. Who, or what, is your trusted advisor to help you in your specific real estate decision?

Find a resource, or several resources, you can rely on with the help of a real estate agent. A real estate agent cannot, and should not, advise beyond their expertise. They can, and should, be the source for your source. In considering what real estate agent suits your needs, consider how they are advising you. An indication of a good real estate agent is how they help you find the resources you need to make your decisions.