Renting vs. Buying in Austin

Austin has had one of the hottest real estate markets in the United States for a few years now. Currently, it's a bit of a seller's market, which means it might be cheaper to rent a home rather than buy one, but there's much more to the renting vs. buying debate than how much your monthly rent or mortgage might be. 

If you're thinking about moving to Austin, you'll want to consider the pros and cons of both options.  Let's take a look:  

Pros of Renting

As stated, Austin is largely a seller's market right now. That could change at any time. But it does mean there's more competition for buyers, which means prices might be higher and there isn't as much inventory available. That may mean that you can find a house to rent for a cheaper monthly payment than you might pay for a mortgage. It also gives you a little more flexibility. You can rent a house for a year, and when your lease is up, you can re-evaluate your options. Other pros of renting at any time are that you don't need a down payment, aside from a deposit, and you aren't usually in charge of maintenance and the costs associated with maintaining a home.  

Con of Renting

But there is a downside to renting too. First of all, that monthly rent payment may be great today, but your landlord can raise it whenever they decide to. Next, you aren't building any equity when you rent a home. You're simplifying paying someone else to provide you a place to live. You will also usually find that you have little control over your property and what you can do there, from owning pets to remodeling to adding amenities. 

Pros of Buying

Buying one of the houses for sale in Austin, TX comes with many benefits. First, you will have equity that will start building as soon as you make your first mortgage payment. Your payments will also be stable. As long as you have a fixed-rate mortgage, your payments will be the same no matter what happens. Owning a home also comes with tax benefits, and it can be a great investment in the long run, whether you resale when the home is worth more than it was when you bought it or you eventually move and use the home as a rental property yourself. And, of course, you have a lot more freedom when you own a home. Want to add a hot tub or paint the living room? Do you want new countertops or to finish the basement? The decision is 100% yours.  

Cons of Buying

Owning a home comes with great responsibility, and for many people, that can be the biggest con of buying. If you're renting and the HVAC dies or a pipe bursts, your landlord is usually in charge of fixing it. If you own your home, and something like that happens, you're the one who has to fix it. You'll also find that you have to pay property taxes, and you'll typically need a down payment. 

The Bottom Line 

There is no one-size-fits-all answer as to whether you should buy or rent a home. For some people, renting is the only option right now, but for others, it's a great time to buy. One of the best ways to make that decision is to work with a real estate agent in the area where you want to live. They can help point you in the best direction for your unique situation.  

If you're thinking about moving to Austin and interested in buying a home or further breaking down the pros and cons of renting or buying a home, contact me, realtor Heather Burke, at (512) 434-9004 or [email protected] today.