Not Everyone is Suited to be a Homeowner

A recent article in the Washington Post pointed out that not everyone should buy a house and that renting is viable option for a lot of folks. I should point out that an estimated 53% of all Austin households are renters. The main reason stated in the article is the plain fact that as a renter you can move about the country with comparable ease. Quite a few of our clients are what I call “Accidental Landlords”, folks who had to move, usually for job transfers, who now find that they can’t sell, so they became an accidental landlord. That is another good story as doing so can create wealth. Another reason cited in the article for renting vs. buying is of course the capitol needed to purchase a home may not be readily available. doing so can create wealth. And then come the repairs, and as any landlord will attest to, every single building will need them. And to offset repairs, that requires even more cash. At a minimum landlords should save 5% of the gross rent as a repair hedge, and 10% is even better. And so it goes,

Which is the best way for you to go, rent or buy? It really depends on our financial strength and your goals. If you have questions or would like to further discuss this topic, please fee free to reach out to us at Austin Landmark Property services. We are Austin property management experts.