As a Phoenix AZ real estate agent, we are conditioned that buying is renting. I understand that there are several questions to ask yourself: Bottom line; each person’s individual situation situation is unique.Ask yourself these 5 questions, …so you can decide if now is “Not” the right time to buy real estate.

1. Will you be in your current job for at least 3-5 years? – If there is any chance of relocation or job change in the near future, I would not recommend you buy with this potential financial instability.
2. Do you see any major family changes, children, divorce or separation in the foreseeable future? children are a large expense and selling a home through a divorce or separation is not an ideal scenario for best results.
3. Will a new mortgage test your financial limits? – there is no reason to work so hard to barely pay a mortgage on a home you cannot enjoy.
4. Do you have at least 6 months of emergency savings in case of unforeseen financial hardships? Make sure that you have savings should an unforeseen event cause short-term problems in paying your mortgage. Losing your home can be emotionally and financially devastating to families.
5. Do you have 10% (20% is better) down payment? – If you cannot get a fixed mortgage payment at a favorable rate, it is likely that you cannot quite be certain enough you will be able to afford your home for more than 3 -5 years.

However, there are renters who are very happy. I wanted to share a letter I received from a very satisfied renter.

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Dear Sir:

I am a proud renter and can buy any house I want–with the cash. I saved by not sending it to a bank to make BANKERS wealthy.

Check out these facts.  I live in a ten year old house, the largest house on the block.  My rent has gone up to $800/month.  If i bought this house TODAY, not two years ago, I would be paying about $3800/month.

Since I have lived here, I have saved the difference between my rent and projected PITI.  Two years ago at the BUBBLE peak, it would have been $5,000/month.

So here I am, my landlord is  hoping I stay and rent while he is swimmng UNDERWATER.

Do you know many middle class people buyers or mortgage holders (not homeowners)  who can save cash $3-5,000/ month??

The ONLY person with cash at the closing table is the buyer.  The buyer has either money from a banker or cash.

 I have owned many houses and did not believe renting was sensible UNTIL I started renting.  The owner of this house CAN NOT SELL for at least ten years.  So he MUST consider keeping ME HAPPY.  Will a mortgage company  do the same?  My landlord—promptly fixes everything—he writes it off.  I don’t have to write off anything, but look what I save!  For me, A house is NOTHING more than shelter.

If I bought any time in the past fifteen years, I would be behind where I am now financially because of the amount of property taxes  I would PAY—and the HUGE interest would PAY!

I am GLAD I AM NOT a buyer. We can and do travel all over the world with the money we would have thrown at              banker. -

– A Happy Renter!

Buying vs. Renting is the age old questions. There are compelling reasons for both. Make sure you ask all teh right questions before you step into home ownership.

I hope this explanation is helpful to buyers and sellers of real estate in the greater Phoenix real estate market.  Make sure you and your real estate agent are knowledgeable and aware of  the questions for you to ask before buying.

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Copyright © James Wexler *Inspection Contingency – according to the AZ Association of Realtors*

If you are considering life in Fountain Hills AZ or living in a golf community,  hire an agent who is an expert in Fountain Hills AZ golf properties and has the experience to get the job done.

Call 480.221.8080 to find out more about Phoenix AZ real estate and life in Scottsdale AZ