Relocation Requires Decision: Buy or Lease?
Today’s real estate market has brought to the forefront this important decision: When it is time to relocate should you lease a new home in your new city or are you better off buying? This was a fairly easy decision ten years ago when we were experiencing a boom in the real estate market, but today, with a glut of homes on the market and no sign that values will increase in the near future, this decision takes on added importance.
Before we list the pros and cons of buying vs. leasing, a general statement about real estate: as a long term investment, experts consider buying real estate a sound decision. That being said, on a short term basis a person cannot realistically expert to “turn a profit” in today’s economy.
And now for the pros and cons of leasing:
- Leasing requires no “out of pocket” maintenance expenses
- Leasing does not require a considerable down payment
- Leasing is simply an easier option when relocation happens often
- Leasing does not offer the advantage of a constant monthly payment for longer than the lease; in other words, after a 12-month lease expires the monthly price could rise, whereas a 30-yr mortgage locks in the monthly payment for thirty years.
Pros and cons of buying:
- Buying is an investment in the future; if the market improves this is a good investment; if the market does not improve you may be stuck with that property for a few years.
- Buying of course means freedom from the whims of a landlord.
- Mortgage payments are locked in for 20 to 30 years.
- Quite a few more tax advantages to buying and owning.
- Buying requires more money down to get into the home
- Buying means that upkeep and maintenance are your responsibility.
There is no easy answer for this question. Professional athletes and entertainers who face relocation at any time during their careers must ask themselves these questions each and every time they have to relocate. That is why it is crucial that you have a financial expert and probably more importantly a relocation expert who you trust who can advise you on this decision.
The easy, ten cent answer is that short term should mean leasing whereas long term should mean buying, but in the case of professional athletes there is no guarantee that any relocation is a long term situation.
We at SportsRelocation.com are the relocation experts and we would love to discuss these incredibly important factors with you. Give us a call the next time relocation becomes a reality for you.
By: Ikem Chukumerije
SportsRelocation.com™ assists players/coaches of the NBA, WNBA, NFL, MLB, NHL, and Entertainers relocate nationwide by servicing your Real Estate & Relocation needs.
The Sports Relocation team is waiting to hear from you. Our primary goal is to assist you with all of the challenges related to transitioning into your new home. Visit us at http://www.SportsRelocation.com or call us at 310.927.2344