North Sound Property News

Real estate agents the world over LOVE to send out buy vs. rent calculators to people who are renting a home but who may be interested in owning.  Usually, these calculators put the question into financial terms, and the intent is to show how owning is a better deal.

 But, I’m not actually sure that the calculators address the real thought process that goes into making the decision to buy vs. rent.  I talked in a different post about how buying a home is an emotional decision rather than a rational one most of the time.  That’s not a bad thing, but the reality is it’s hard to quantify something that is somewhat unquantifiable.  Realistically the decision happens when it’s time for that person, and can be based on a variety of factors, not just whether or not it makes financial sense.

So, how do you know when it’s time?  This was the question recently asked by a good friend of mine, and to answer her, I’m going to take all of her subquestions one at a time.  Here’s the email she sent me:

• What is important to consider about where you are in LIFE, in your life journey, or even who you are as a person, how you LIVE your life, when thinking about buying real estate? Do you need to be committed to the location for a certain number of years? Do you have to wait until you know whether or not you’re going to want children? Do you have to be stable in your career? Basically, is it okay for someone like ME (prone to impulsive decisions, not necessarily in a long-term committed relationship, transitioning in career, and with a knowledge that those qualities or characteristics of my person and my life are not going to change drastically - someone who doesn’t have long-term goals of settling down in one place with one type of life and one career, etc.) to consider buying a home?!
• Related to that, what are the benefits of owning your home outside of the “stability” ones?
• If you have a lot of conflicting interests and likes about real estate - like I like both historic AND modern, quiet and quaint AND in-the-heart of downtown, etc. - how do you best determine what will make you the happiest?
• What are my smartest options for financing? Like here, with the salary I’m making now, I might qualify for one of those first-time homeowners loans. What’s the minimum I could have saved and still buy a house? You mentioned borrowing against your 401(K) before. How does that work? What’s the optimal combination of cash, loans, etc.?
• Would I regret buying a condo? Am I going to want a house instead? How do I know??
• I’m suddenly just feeling like it no longer suits me to be a renter. I’m feeling the longing for ownership, for responsibility, for commitment. Is that a good thing? Is that normal? Is this something that just happens to people as they get older? Does it mean I will stop taking risks and being adventurous? Does it tie me down? Will I be weighed down by a monthly mortgage obligation? Does it make me less free?
• At this stage in my life, is real estate a good place for my resources to go? OR is there something else that $$ should be going to FIRST before I consider spending so much on a home? It certainly doesn’t feel like rent is a good place for my resources to be going..

Obviously, that’s a lot of questions but they cover a lot of the thoughts that go through a person’s head when they are thinking about doing this.  I’m going to address them one by one over the next few days because I think it’s a good exercise to consider all the different parts of what goes into the decision.  Buying is NOT right for everyone, and it is a big decision that should not be taken lightly.

But, it can be rewarding in lots of different ways IF it is right for you.

About the Author: Sandy Kaduce is Associate Broker of Gallery Homes Real Estate. She serves buyers and sellers in North King and South Snohomish counties. She is 2009 Board President of the Mukilteo Chamber of Commerce, as well as Vice President of Site Selection for Habitat for Humanity of Snohomish County. For more information, visit Sandy on the web at www.sandykaduce.com! Read more from this author