How To Choose Between Renting and Buying in Houston

Renting vs Buying in Houston

Are you thinking about moving to Houston, but still unsure of whether or not to buy?

Believe it or not, this is a common question people ask themselves prior to moving—especially when moving long-distance.

So, how do you make the right decision? 

 

Renting a Home vs Buying Property in Houston: Here’s What You Need to Keep in Mind

 

Renting

 

Pros:

 

Easy To Find Conveniently-Located Luxury Homes

There are plenty of reasons why Houston is such an attractive city, and the abundance of beautiful, high-end properties is absolutely one of them.  Whether you’re interested in a single-family property, a condo, an apartment, or a townhouse, there are plenty of luxury listings available for rent throughout the area.

Relocating Is Relatively Hassle-Free

For most homeowners, relocating means packing everything up, finding a Realtor, listing the property, and patiently waiting for the perfect buyer to submit an offer.  Meanwhile, renters can practically pack up and move whenever they’re ready—even if they’ve signed a lease.

 

Cons:

 

Monthly Rent Prices Are On The Rise

According to Zillow, monthly rent prices in Houston continue to rise each month, and median prices even increased by .8% YoY to $1,600/ month as of November 2018

Not only is that a significant price to pay for property you don’t own—considering the additional costs of a security deposit and renters’ insurance, it’s not hard to see how quickly renting becomes fairly expensive.

Over Time, Renting Costs More Than Buying

One of the most common misconceptions about renting is that doing so costs less than buying a home.  And while that may be true in the short term, as monthly rent prices cost less than a down payment, tenants who rent for years on end will inevitably spend more than homeowners.

As you can see from the table below, renting for years on end can be significantly more expensive than purchasing your own property—especially given the fact that rent prices generally tend to increase as time goes by.

Real Cost of Renting

 

Buying

 

Pros:

First-Time Buyers Can Apply For Special Savings

As a first-time homebuyer in Texas, you may be eligible for financing options to help you purchase property. 

The Texas Department of Housing and Community Affairs, for example, now offers mortgage loans with competitive interest rates and down payment assistance for qualifying buyers.  Visit tdhca.state.tx.us to see a list of participating lenders and find out if you’re eligible!

Houston Is Home To Outstanding Schools

Do a quick search on GreatSchools.org, and you’ll see just how many top-rated private and public schools are located in Houston.  Not only is this good news for young parents, but aspiring homeowners can also take comfort in knowing the positive impact these schools’ performance have on property values.

Houston Boasts Plenty Of Long-Term Career Options

With dozens of Fortune 500 companies located in Houston, Houstonites can take advantage of career opportunities in virtually every field—even outside of the energy and oil industries.  In fact, according to a recent report, Houston has become a “hot spot” for the following industries: marketing, event management, construction, and nonprofit fundraising. 

Median Home Prices In Houston Are Falling

According to Zillow, median sale prices for homes have decreased by 3.7% YoY to $216,000, as of November 2018.  This is clearly an ideal time to buy if you intend to stay put for the foreseeable future.

There’s Always Demand For Housing In Major Cities

Owning property enables you to build equity as you pay off your mortgage.  And considering Houston is the fourth largest city in the country, it’s safe to say there will always be sufficient demand for housing in the city and its surrounding neighborhoods.

 

Cons:

 

Houston Experiences Severe Flooding

Luckily, homes built after September 1, 2018 are required to sit 2 feet above the floodplain, and should therefore be less susceptible to flood damage.  That said, flooding will always be a topic of concern in Houston, and buyers must be cautious of properties at high risk for flood damage.

Mortgage Interest Rates Fluctuate Unpredictably

Fortunately, however, the interest rate for a 30-year mortgage recently fell to a 9-month low.  If you’re thinking of buying a home in 2019, now is the perfect time to get pre-approved!

 

Get Help Finding Your Houston Dream Home!

 

If you’re ready to purchase a home in Houston, my team and I can help!  We take the guesswork out of the home buying process so you can enjoy a hassle-free transaction.

For more information about homes for sale in the Tanglewood, Memorial, Uptown, and Galleria neighborhoods, please contact me today!

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