Rent A Home In Charleston Or Own A Home In Charleston
Rent A Home In Charleston Or Own A Home In Charleston
I have been overwhelmed with the number of calls I have been getting this month_ from people requesting information on rental properties in the Charleston area. I am still surprised that so many people are willing to miss out on home ownership.
If you are currently renting a home in Charleston, or are searching for a rental property, you may have noticed that rents have been rising rapidly. Charleston has a great deal of demand for rental properties and has among the highest rents in the country.
With rising rental rates, low-interest rates on mortgages, and the potential for significant appreciation in the Charleston market, it's surprising to me that the demand for rental property continues to be sustained at its current levels and is being pushed even higher.
Reasons for renting
There many legitimate reasons to rent rather than to purchase a home, especially for short-term objectives. But homeownership continues to be incredibly important for most American families. Homeownership is the single most important component in long-term economic stability and in long-term wealth accumulation.
Some individuals are not able to purchase currently but plan to as soon as possible. Others consider homeownership a burden and plan to avoid it for the long term. Often I speak with people who are moving to the Charleston area who hope to rent just long enough to get to know the landscape so they can develop a clear idea about where they would like to own a home.
NOTE: Getting to know the Charleston area is a legitimate reason for renting. However, working with the right buyers' agent can streamline the process for these future owners to help them own their Charleston home sooner rather than later and avoid the unnecessary outlay of rents that will never be recouped. If you plan on purchasing a home in the Charleston market but expect to rent first, take a long, hard look at projected appreciation values. You may discover that, in addition to the outlay for rent, you risk missing out on potential appreciation by choosing to rent even for a short period of time.
What is really important?
Appreciation potential and tax advantages are often cited as the primary reasons to own a home. But, are these the most important factors? What about the old-fashioned idea of owning a home that is right for you: one that carries with it pride of ownership and all of the underlying personal and emotional reasons for homeownership? Owning a home is far more than just owning an investment vehicle.
Renting a home is only a substitute for homeownership. While it provides many of the benefits that come with homeownership, it lacks the most important benefits – the essential intangible ones.
Renting does provide you a place with a roof, walls and a floor. It also allows you to defer some of the upfront investment costs you may experience with purchasing a home. When you rent you can forgo many of the repair costs homeownership might entail. Yes, there are reasons to rent; yet, when you rent:
You own nothing.
The pride of ownership belongs to your landlord.
The title belongs to your landlord.
The right to determine how long you live there and whether or not you have to move belongs to the landlord
The choice of whether or not to own a pet belongs to the landlord.
The equity appreciation potential belongs to the landlord.
Whether or not you can personalize the property, such as painting the walls something other than just beige, is up to the landlord.
And, making that property your home rather than just a house or just a place to live, from an emotional standpoint, is elusive.
Do your homework
If you are considering renting a home and you are in a position to purchase a home, do yourself a big favor and list the reasons owning a home is important to you and to your family (it should be a lengthy list). Put together your own cost-benefit analysis of owning a home versus renting.
Calculate how much it will cost you to rent over the next year.
How high is the probability that ownership will be a poor decision for you?
What’s the likelihood that renting will end up costing you more than buying?
What are you giving up so you can stay out of the owners’ club?
Before you choose to rent a home rather than to own, step back and think. Get past the unsettling emotions and think about the positive reasons for homeownership. Are you being driven by a balanced consideration of homeownership or are you being driven by fear of commitment? Do you have a legitimate reason for postponing the most important financial investment you will likely participate in during your lifetime? Do you have a fundamental reason for electing to donate your equity potential to a landlord?
There is no question that purchasing a home requires careful financial consideration. But homeownership, having your own home, is the American dream that embodies so much more than the monetary investment. Choosing to rent rather than choosing to own a home may be a wise decision for a limited few. For the majority of individuals, renting is a decision that will be far more expensive and significantly less gratifying than owning.
Trust eXp Realty and our team of real estate agents to help you find homes for sale or to sell your current home. We recognize the level of service that the mobile consumer demands. You have information. You have dreams. We possess experience, integrity, and innovation. Together we create leverage to make your dreams a reality.
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