Buying
vs. Renting Homes in Kansas City - Leavenworth to Olathe
There are many reasons to buy Kansas City homes and
reasons to rent. The benefits of buying
versus renting real estate in Kansas City are relative, depending on a person's
needs and goals. Those who can afford to
purchase their condos or homes in Kansas City weigh several factors including
the financial aspects of the equation.
When
comparing the financial aspects of buying versus renting, it is important to
compare apples to apples and oranges to oranges. Using this rough equation, a quick estimate
of the financial picture can be determined:
Look at the cost of purchasing one home in the same neighborhood as
renting a similar home. To determine the
price-to-rent ratio or P/R ratio, simply divide the price of the Kansas City
home by the yearly cost of rent. If the
number is less than 20, it may be a better financial decision to purchase.
Money
is only one factor to weigh. Many people
do not purchase a home to make money or to save money. There are other advantages to owning Kansas
City real estate – from Leavenworth in the northwest corner to Lansing homes
and Johnson County real estate in Olathe.
Homeowners
take pride in ownership. Owners gain
certain freedoms such as the ability to paint the walls whatever color they
choose or change out the cupboards, install a gourmet kitchen or modify the
property in other ways. They also
develop relationships in their neighborhoods and gain a certain amount of
confidence and stability from being familiar with their surroundings.
For
some people, a few major reasons make renting a better than buying. What are the future plans? How long does the buyer envision staying in
the home? And finally, does a person
really want the responsibilities of maintaining a home, paying property taxes,
and being tied to a mortgage payment for a long period of time?
The
primary deterrent to buying is a debt and/or lack of savings. In Oprah Magazine’s May 2011 article,
financial expert Suze Orman says "If you have credit card debt and haven’t
saved for a sizable down payment, you are not yet ready to own."
Orman
also talks about the financial risks of buying a home and selling it within 5
to 7 years. She explains that when you
sell a home, you should plan on paying the full agents fee, closing costs, the
cost of moving, and other expenses. She
says that the property will evaluate at approximately 3 percent annually. So do the math. When buying, plan to stay in the home long
enough to recoup the costs of moving.
Shelly O'Boynick
Realtor, Broker Associate
RE/MAX Realty Suburban
12701 W. 87th Street
Shawnee Mission, KS 66215
cell-816.830.3370
www.ShellyOBoynick.com
email ShellySellsRealEstate@gmail.com
Shelly O'Boynick
Realtor, Broker Associate
RE/MAX Realty Suburban
12701 W. 87th Street
Shawnee Mission, KS 66215
cell-816.830.3370
www.ShellyOBoynick.com
email ShellySellsRealEstate@gmail.com
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