Renting Versus Buying
Compiled by guest “vloggers” Allison Parks and military veteran Kimberly McAleenan of Conscious Real Estate, this is the eighth installment of a monthly blog series for 2018, providing tips to the military/veteran home buyer. Contact Allison and Kimberly via the Conscious Real Estate website for additional information.
If you’re reading this, you might be saying, well, of course when it comes to buying versus renting, buying wins. Well, as much as buying is an amazing investment, it’s a big one too. For current and former military personnel, make sure you’ve asked yourself the right questions specific to you.
These were put together by Conscious Real Estate, a local company that works with veterans and active military personnel to work through the intricacies of the VA Loan. Let’s dive in.
Renting Versus Buying: How to Know What’s Best?
Renting versus buying is a question most military personnel look into following discharge. However, if you’re still in active service, however, you may have a couple extra questions to ask yourself when it comes to renting versus buying. For one, will you be living there for a long time? If your orders are for two years or less, keep in mind that a real estate buy and sell within two years triggers capital gains tax. In this case, you should maybe wait. One idea around this? If the home you love is in a desirable area and has the potential to be rented, you can always buy and rent until you are discharged later.
VA Loan Mortgage Payments Versus Rent Payments
If you’ve been considering buying a home and you are using the VA Loan, you are in a very good position to get a quality property at a great rate. Renting can squeeze any extra money you have for the month. And, when you rent, you never know when you may have to move out, or when your rent could potentially go up. When you buy, you are generally paying the same amount throughout the length of the mortgage. Using your VA loan is a great way to get a mortgage that is affordable and meets your needs for ownership.
You May Even Be Able to Put No Money Down On a Home
The standard down payment allowance for VA loans applies to conforming loan limits around $450,000. However, there is an allowance for the standard down payment based on the geographical property values. Here in Denver, the VA loan down payment exemption can be adjusted for our current real estate “situation” in the highly sought after Denver-area market. In many cases, when you use a VA loan, you are able to avoid the down payment requirement making buying even more attractive when compared to renting.
If you’re unsure about the down payment requirement or just want to ask advice from a real estate professional, Conscious Real Estate has agents who are also former military and understand how to get from A to B with the VA loan process. They understand the “loop holes” and ways to maximize the loan too. This way, you’re able to tap into any federal funds such as “green-proving” your home with energy efficient additions (many potential home buyers qualify for $6,000 or more in many cases). You can get in contact and learn about the VA broker network by clicking here.