Working with a couple relocating to Texas, we were just striking out. None of the real estate in University Park or any other part of the Dallas-Fort Worth Metroplex was appealing to them. A combination of factors came into play. They were nervous about the move and nervous about spending the money. They didn’t know the area, and they had very specific tastes.
What was my suggestion? Lease a home for a year, learn the city, look at real estate listings in the meantime, and give yourselves a break. In the beginning both of them were absolutely appalled. The wife even said, “We’re not a couple of college kids!” No. You’re not. But more and more people are in lease situations today thanks to the economic downturn and will likely remain renters for three times as long as the previous generation. Frankly, leasing just makes good sense.
When you buy a house, you are shelling out money and acquiring new financial responsibilities — closing costs, mortgage payments and interest, property taxes, homeowners insurance, maintenance and utilities, and dues if you’re in a homeowners association. If you lease, you can bank a lot of that money toward the day when you will buy, or use it to resolve debt and improve your credit rating.
Yes, mortgage interest is deductible, but that can be deceiving. According to the findings of the National Multi Housing Council, about 50 percent of homeowners don’t actually get that tax break because even taking their mortgage interest and property taxes as part of the equation, their total deductions are not greater than the standard federal tax deduction. In this economy saving money and / or resolving debt most likely trump any perceived tax benefit.
The rental market is also up considerably thanks to the real estate slump. Owners who have not been able to sell their houses or condos have converted their properties to rentals in order to generate some income. Buying commits you to a property, leasing just commits you to a period of time. In a rental situation, you keep your freedom and mobility while establishing a home base that lets you learn the city, explore the real estate listings, and strengthen your financial standing.
My relocating couple changed their minds after finding a lease property they both liked. We stayed in touch for the next year, looking at listings, and refining their criteria in terms of amenities and geography. Because they were coming into a completely unfamiliar metro area, they realized over time that had they bought immediately, they would have settled for a property they did not like, in a part of the city that wouldn’t have suited them either.
By waiting, they ultimately found the perfect house in an area with restaurants, theaters, shopping venues, and other attractions they enjoyed. Some people call this a case of “test” living. If so, they passed the exam with flying colors!
Are you going to relocate to Dallas, buying or leasing a home in Dallas | Fort Worth Texas (DFW)? Darrell Self can help you if you’re shopping for real estate in Allen. Visit DMD Realty DFW.com and browse ALL the homes for sale (and ALL the lease homes) listed in the MLS on 1 website … no registration required.