Real Estate Stories

To rent or to buy, that is the question

It’s one of the most common questions among today’s new generation of home seekers—does it really make sense to rent long term, rather than buy?

To help answer this question, here are three times when it’s better to buy than to rent.

1. When you’re planning for retirement

Those who chose not to buy will likely have to pay rent for the rest of their life. A recent article in Hawaii News Now reported that senior citizens on a fixed income are finding it harder and harder to afford renting in Waikiki. What would you do if you were collecting social security every month, only for your landlord to increase your rent? Most likely, you would have to alter your lifestyle drastically just to keep a roof over your head. Our advice? Buy now so that in 30 years you will own your place outright and the thought of monthly payments will be a thing of the past.

2. When you prefer fixed payments

In most areas, your landlord will increase your rent as the years go on, meaning your payments go up but your environment stays the same. With a mortgage, however, your payments will remain the same whether you’re in year one or year 30 of your mortgage. With current low interest rates, you may be able to find a property to buy for the same cost as it is to rent.

3. When you want Home Owner Tax incentives

Many people don’t realize that the ongoing tax benefits, primarily in interest deductions, can add up to thousands of dollars each year. Generally speaking, most people can take the amount of money they’re paying in rent together with the money they’ll save in taxes and qualify for a mortgage, assuming interest rates remain low.

For more information on home ownership tax incentives, click here. For more information, email William.doom@guarateedrate.com or contact me directly at 808.387.3366.

You Might Also Like

  • Jaimie Brown
    January 20, 2014 at 12:42 am

    I have a client wishing to purchase at Stanford Carr’s new development Kaka’ako. Will you please provide me more information on this project e.g. prices, unit sizes, amenities, anticipated maint. fees, etc. Thanks you, Jaimie Brown, (808) 385-5318

    • Holden Lau
      February 28, 2014 at 8:56 pm

      Hi Jamie,

      I am so sorry I haven’t got back to you sooner, usually these comments get emailed to me and for some reason this time it did not. No information reagrding sales have been released yet regarding Standford’s development in Kakaako. I will hold on to your information and what I do hear anything I will be happy to pass the information along.

  • sharon ornellas
    April 14, 2014 at 5:47 pm

    aloha,
    how/where can i get an apartment rental application for the new kakaako?
    mahalo

    • Holden Lau
      May 20, 2014 at 8:19 pm

      Hi Sharon,

      If you could be more specific about which project you are interested I may be able to assist you. Kakaako is a neighborhood made up of many projects that are both finished and currently under construction. Let me know what I can help you with.

  • Shannon Kikuchi
    December 3, 2014 at 11:08 pm

    I have been asking myself if I am a life long renter or a buyer recently. I am definitely not in the right financial state to buy right now but love the Kakaako development that is going on. Do you have any information on rental property at Keauhou place yet?

    • Holden Lau
      January 15, 2015 at 9:09 am

      Aloha Shannon, they will be offering units for sale at Keauhou Place in the coming days/weeks. There will most likely be units to rent once the building is completed, as a lot of people purchase these units as investments. If you are interested in sales or know of anyone who might be interested in living in the Kakaako neighborhood feel free to contact me at Holden@kakaako.com. Mahalo!