Should I rent or purchase a home?
What Should I do
It’s a tough question with many answers. And no two people’s answers are the same.
Let’s look at both sides of the question.
Renting
1 – You may not have a choice if you don’t have the necessary down payment. This may decide the issue for you.
2 – If you are undecided if you want to remain in the area then renting may be for you. If you are subject to frequent relocations, then you may want to rent. Or possibly do not want the responsibility of maintaining a home.
3 – Your income may not be high enough to take advantage of any tax benefits you receive as a homeowner.
Purchasing
1 – Your monthly payment can usually be lower than a monthly rental payment . When an investor purchases a home to rent out, they purchase the home as you would. They need to make a profit so the monthly rental will be more than their expense to purchase the property.
2. Your mortgage interest and real estate taxes are deductible when you purchase. This means that you deduct those amounts from your taxable income. How much this saves depends upon your tax bracket. When you are the homeowner, there is no landlord to decide if he wants to sell and force you to move out. If you want a pet, get one. It’s your decision.
3 – As the homeowner, you can make changes to the property. If you want to remove a wall, remodel, or paint – go ahead. You don’t have that choice in a rental.
4 – Home ownership gives you tax benefits. As a homeowner you can deduct all interest paid on the mortgage. As a tenant you have a pile of cancelled checks at the end of the year.
5 – And in my opinion, you cannot put a price tag on how you feel when you own your own home.
Comments? Contact us.
Will you be buying and/or selling a home? Contact us.