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Renting vs. buying in this market

Published: Aug. 18, 2021 at 10:35 AM EDT|Updated: Aug. 19, 2021 at 9:08 AM EDT
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RICHMOND, Va. (WWBT) - Do you rent or do you buy? This is a tough call for a lot of people in this current real estate market.

There is no question that this is a difficult real estate market because we’re seeing increases in rent and increases in housing prices due to a lack of supply.

Since your home purchase is often the biggest financial expense you will make, Michael Joyce with the Richmond financial firm Agili says you need to be careful in this market, where there are bidding wars and escalating prices.

He says the biggest factor for renting versus buying, maybe how long you really plan to stay in an area.

“So if there’s any doubt as to whether you should be renting or buying or if you think it might be a short-term move, I would certainly opt towards renting vs buying,” Joyce said

Joyce says to remember when you’re buying, that’s more of a long-term commitment, and it’s going to take you a while just to break even on the closing costs.

He says if you don’t know if you are going to stay somewhere for five years or more, it might not be worth it to buy just yet.

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