Should You Buy or Rent in Philadelphia

Should You Buy or Rent in Philadelphia

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buy or rent in philadelphiaDeciding whether you should buy or rent in Philadelphia is always a tricky question and these days a very popular one.

A recent report from Zumper shows that median rents for two bedroom apartments are up 3.70% to $1,560 while one bed room apartments remained relatively flat at $1,400. These prices put Philadelphia in the top twenty for rents in the country. While Philly is still cheaper than the other large cities in the Northeast corridor, the prices are still considered high.

This, in part, is what has led to the housing shortage we have seen over the last few years here in Philadelphia. With rental prices increasing, more people looked to buy instead of rent. Construction couldn’t keep up and so we have been dealing with a red hot seller’s market.

However, nothing lasts forever and with more apartments being built than in the last decade more equilibrium may return to the Philadelphia housing scene.

If you find yourself debating buying versus continuing to rent, here are some things you should consider:

Reasons to Buy and Not to Buy

There are many great reasons why you should buy instead of rent. Here are some of the top ones:

  • Equity: When you buy instead of rent you build up equity. This will allow you to borrow against it later if needed and cash out when it comes time to sell. When you rent, you’re just paying that money to a landlord.
  • Taxes: Mortgage interest is allowed to be written off come tax time. That means lower tax bills and more money back from the feds. Who doesn’t love that?
  • Control: When you own a house, you call the shots. You don’t have to get permission to make changes (unless you belong to an HOA), you know your lease won’t be ended before you choose to and you won’t have to put up with any other landlord related headaches.

Owning a home can be a great thing if you do it right. But despite home ownership being crowned the corner stone of the American Dream, it’s not for everyone at all times.

Reasons to Rent

While buying a home can be great, there are a lot of great things about renting as well. Here’s why you might want to think of passing on home ownership:

  • Money: To buy a house you need at least some sort of down payment and depending on the cost of the house it’s going to be a big chunk of money. Even if you can get a FHA loan that requires only 5% down, you’re still going to have a nice nest egg saved up.
  • Less Flexibility: We home owners in bad situations all of the time because something major changed in their lives and they didn’t have the flexibility that renting provides. If you lose your job or get relocated, divorced or sick you may not be able to live in your house or afford it any more. When you rent, typically you’re only locked in for the term of lease and even then there are ways to break it.
  • Credit: Yes, landlords look at your credit but the requirements are never nearly as strict as buying a house.
  • Things Break: When something breaks at your house, you have to fix it. That means time, money and possible loss in value to your home. However, if you rent you just call the landlord and they come and fix it.

Renting can be great and has a lot of pluses. Take a long hard look at your situation and see what fits you best.

Need More Help?

If you need more help in deciding whether or not to buy or sell in Philadelphia, give us a call! Here at D&D Property Solutions we’re Philadelphia real estate experts that can help you decide whether to rent or buy depending on your unique situation.

Give us a call at (267) 888-8987 today or contact us here and our friendly staff will answer all of your renting and buying questions.

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