Buying vs Renting your personal residence in the current market

Fort Worth, Texas
Buying & Selling Real Estate
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Buying vs Renting your personal residence in the current market

Brad HuntonPro Member
Rental Property Investor · Granbury, TX · Member since 2020 · 87 posts · 70 votes

In the current market we are in (inflation, rates, housing market uncertainty, etc.) what are your thoughts on buying vs renting your primary residence?  

I own a small portfolio of SFH and a couple of duplexes and we have been renting our residence for the past year. Our lease is coming up in a month or so and while we do plan to stay for another year because of our kids I have started to think more about buying. If I buy another house we would have to downsize but our monthly mortgage would still be higher than what I am paying for rent. I know that depending on who you talk to, your primary is not an asset because it does cost you money each month but I still struggle with paying rent and not building any equity.

What are your thoughts either way?

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  • Ko KashiwagiPro Member
    Lender · Los Angeles, CA · Member since 2022 · 967 posts · 445 votes
    2y

    Hi Brad,

    Have you considered house hacking? If your expenses after renting out the other units/rooms is lower than what you would pay for rent, this would allow your to buy another property while paying less monthly.

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  • Brad HuntonPro Member
    OP
    Rental Property Investor · Granbury, TX · Member since 2020 · 87 posts · 70 votes
    2y
    Quote from @Ko Kashiwagi:

    Hi Brad,

    Have you considered house hacking? If your expenses after renting out the other units/rooms is lower than what you would pay for rent, this would allow your to buy another property while paying less monthly.

    I have and once we do buy it will be with an ADU that we can STR but just wanting others opinions on what they see or do at the moment.
    0Reply
  • Crystal SmithPro Member
    Moderator
    Real Estate Broker · Chicago, IL · Member since 2014 · 3k+ posts · 1k+ votes
    2y
    Quote from @Brad Hunton:

    In the current market we are in (inflation, rates, housing market uncertainty, etc.) what are your thoughts on buying vs renting your primary residence?  

    I own a small portfolio of SFH and a couple of duplexes and we have been renting our residence for the past year. Our lease is coming up in a month or so and while we do plan to stay for another year because of our kids I have started to think more about buying. If I buy another house we would have to downsize but our monthly mortgage would still be higher than what I am paying for rent. I know that depending on who you talk to, your primary is not an asset because it does cost you money each month but I still struggle with paying rent and not building any equity.

    What are your thoughts either way?


     I think you answered your question with your last statement- "I still struggle with paying rent and not building any equity".   Buy.

    312-681-7487
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  • Wale LawalBusiness Member
    Real Estate Broker · Houston | Dallas | Austin, TX · Member since 2018 · 5k+ posts · 2k+ votes
    2y

    @Brad Hunton

    There are a number of personal and practical concerns when deciding whether to buy or rent a primary residence. Given the state of the market, keep the following considerations in mind:

    Buying a Primary Residence:

    Pros: Building Equity, Stability, Potential for Appreciation

    Cons: Upfront Costs, Responsibility, Market Uncertainty

    Renting a Primary Residence:

    Pros: Flexibility, Maintenance Responsibilities, Fixed Monthly Costs

    Cons: No Equity Buildup, Limited Control, Rent Increases

    Ultimately, your particular situation, financial objectives, and personal tastes will determine whether you should buy or rent. Consider the benefits and drawbacks in light of your present circumstances and goals for the future. Making an educated selection can be aided by speaking with a real estate agent and a financial advisor who can provide you individualized advice.

    Good luck!

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