Is Renting or Buying in Phoenix the Better Option?

Phoenix is experiencing strong economic growth and attracting newcomers while bringing prosperity to longtime residents. If you’re considering a move to the Phoenix area, there are a number of factors to consider, including proximity to work, school, restaurants, and shopping, budget, safety, and whether to rent or buy your next home.

Our goal is to help you find the home that fits your lifestyle and budget whether you’re a first time home buyer or looking to rent. Our area of expertise is in the Chandler, Gilbert, Mesa, Phoenix, and Queen Creek areas. Contact us online or give us a call at 480-237-9979!

Benefits of Renting a Home In Phoenix

Once you’ve chosen the perfect neighborhood, the next step is to choose the perfect home. Renting a home in Phoenix has a number of advantages and considerations, including the following:

  • Cost. The upfront costs associated with renting a home typically include the first month’s rent and an additional months rent for a security deposit—the return of which is dependent on the condition of the home at the end of your rental term.
  • Duration. How long are you planning on staying? Chances are your potential landlord will ask you to sign a lease, whether for six or twelve months.
  • Maintenance. Unless otherwise specified, maintenance and repairs are the responsibility of the landlord.
  • Hidden costs. Rent increases and additional deposits for a cleaning fee or pets can drive up the cost of renting.
  • Monthly expenses. Unless your lease states otherwise, budget for utilities, cable, phone, internet, and renters insurance in addition to the cost of your rent.

Benefits of Buying a Home In Phoenix

While buying a home can be stressful, the end result can make it all worthwhile. Homeownership is a dream for many, and if you’re considering buying a home in the Phoenix area, research the neighborhoods you’re considering thoroughly before putting down roots to maximize your investment and increase satisfaction. Here are some additional factors to consider before you buy:

  • Price. The real estate market moves quickly, so it’s important that you anticipate all costs upfront to determine the price of home that you can comfortably afford. Initial and recurring costs include: closing costs, lenders fees, escrow and title fees, down payment, insurance, taxes, and potential HOA fees.
  • Taxes. Leave room in your budget to pay annual property taxes.
  • Maintenance. Depending on the age and condition of the home, annual maintenance costs can vary widely, but funds should be kept in reserve in the event of a large expenditure such as a new roof or heating and cooling equipment.
  • Mortgage rates. Rates can fluctuate, increasing or decreasing your monthly payments, but you can claim the mortgage interest on your annual tax return.
  • Commitment. Depending on the current real estate market, homeowners may need to put down roots for a number of years to realize a return on their investment.

The Bottom Line

Choosing between renting and owning a home in Phoenix is a personal decision and one that only you can make. Weigh your options carefully, keeping in mind the costs associated with each and your long term plans and goals. Regardless of the path you choose, Southwest Mountain Realty can help, with over 20 years of experience in every aspect of real estate in the Phoenix metro area.

Contact our real estate experts online or call us at 480-237-9979 if you’re looking to purchase or rent property in Chandler, Gilbert, Mesa, Phoenix, Queen Creek, or the surrounding areas!