The real estate market in the State of Oregon is drawing a lot of attention from researchers and potential buyers. The state’s largest city, Denver, has seen significant gains in median home values in recent years, and it continues to be a vibrant market up to the present. Even though median home values in Denver are projected to decline slightly over the course of the next 12 months (according to Zillow), the city still attracts considerable interest from home seekers. Other cities in Oregon are also doing well at attracting attention. Oregon, in particular, currently has a very hot real estate market and may be an excellent option for many buyers. Though owning a home in Oregon will always carry numerous benefits, there may be cases where renting a home may be more advantageous than buying. In this article, we will discuss the factors which you will need to consider when making the decision to rent or buy in Oregon in 2019.  

We will approach this topic by highlighting the pros and cons of both renting and buying. When it comes to buying, we will highlight the advantages, such as tax benefits, equity, and the creative freedom of ownership; we will also discuss the drawbacks, such as maintenance and upkeep, repairs, property taxes, insurance, and so forth. Then, we will discuss the advantages and drawbacks of renting. Advantages include flexibility, predictability, and less risk, and the drawbacks include nonrefundable fees, lack of equity, security deposits and living restrictions (such as pets). These are the types of things you’ll need to think about to make an informed decision on the issue of renting or buying in Oregon. Let’s go over these pros and cons in detail.

To recap, we will cover the following:

• We will go over the advantages of buying
• We will cover the drawbacks of buying
• We will discuss the advantages of renting
• We will go over the drawbacks of renting
• We will discuss how Sammamish Mortgage can assist you through the buying process

The Advantages of Buying a Home in Oregon

If you decide to buy a home in Oregon in 2019, this decision will certainly come with a number of significant advantages. For one thing, you will be building equity in your home. Even if you obtain a mortgage loan, your payments toward the loan will be contributing to your equity. This is a key distinction between paying rent and paying on a mortgage loan. When you pay rent, the money goes to the landlord, but when you pay a mortgage, you’re building equity while making the payments. Eventually, you may be able to profit from the equity. Another key advantage of buying is creative freedom. When you buy a home, you are free to add any sort of renovations, improvements or alterations you wish. This isn’t always the case when you rent. Often, landlords will place restrictions on how a given place can be altered by tenants. You won’t need to worry about this when you buy. Another advantage is that buying a home comes with certain tax perks. You must look around for best Oregon mortgage rates before the final decision. Homeowners are eligible to deduct mortgage interest, property taxes, and so forth. There is also the benefit of Section 121, which allows homeowners to eliminate a portion of their gain when they sell their home.

The Drawbacks of Buying a Home in Oregon

When you own a home, this also comes with a few drawbacks as well. Buying a home will place quite a few costs on the buyer. Unless you’re paying entirely with cash, you’ll have the mortgage payments, and also possibly private mortgage insurance. Then, there’s home insurance, property taxes, and possibly HOA fees if you decide to buy a condo. On top of all of these costs, you’ll be in charge of basic maintenance and upkeep, as well as repairs. These costs can also be quite significant. In general, the larger and more expensive the home, the greater will be the costs to maintain it. You’re also in charge of your own utilities and other services. Sometimes, utilities are included or bundled together with rent payments.

The Advantages of Renting a Home in Oregon

If you decide to rent rather than buy, this will in fact come with certain benefits. One benefit of renting is that you’ll have predictable monthly expenses. You’ll know exactly how much you’ll owe in rent and, usually, how much you’ll pay in utilities and other services. Your monthly expenses won’t be as fixed when you buy. The other benefit is flexibility. When you rent, you can pick up and move on a whim, as long as you provide proper notice to your landlord. This allows you to move more easily for employment or business opportunities, or to take advantage of other real estate opportunities in other markets. Another advantage is that you take less risk when you rent, because you don’t have to worry about market fluctuations or repair costs. If an appliance breaks down, your landlord has to fix it. And if the property value declines, you’re unaffected.

The Drawbacks of Renting a Home in Oregon

One of the key drawbacks of renting, however, is that you’re not building equity. When you make your payments, you’re just padding the pockets of your landlord, not building any ownership interest in the property. Another drawback is that renters typically have to put up certain fees and deposits, and sometimes these are either nonrefundable or end up lost. Most rental complexes charge non-refundable processing or administrative fees, and often a part or all of your security deposit may be lost if you cause any damage to the property. What’s more, when you rent, you usually face certain restrictions. For instance, most landlords will restrict pet ownership, lifestyle habits, and so forth. These restrictions won’t be placed on you if you decide to buy.

Sammamish Mortgage Can Assist You

These are just some of the factors you’ll need to think about when you make your decision to either rent or buy in Oregon in 2019. You’ll also need to think about other things as well, such as current and projected future market conditions, your saving and spending habits, your income, and so forth. In some cases, for instance, it may be better to rent and invest the money which would go toward a purchase in other areas, such as the stock market. You’ll need to do copious research and consider all relevant factors carefully before making a final determination. If you decide to buy a home in Oregon, and plan to obtain a mortgage, Sammamish Mortgage can help you. We’ve been in the mortgage industry for over 25 years, proudly serving the states of the Pacific Northwest. We help customers all throughout WA, OR, ID and CO. If you’re interested in learning more, you can View Rates, or Contact Us to speak directly with a mortgage professional. You can also Apply Now to expedite the process and see whether you’re currently pre-approved for a loan. We look forward to hearing from you!

Paul Petersen