Should I Rent or Should I Buy?


There are times when it is better for a person to rent, but in many instances home ownership is the way to go.  Here are the five main reasons why many choose home ownership over renting.

Stability of Housing Costs
Rent payments can be unpredictable and typically rise each year, but most mortgage payments remain unchanged for the entire loan period. If the taxes go up, the increase is usually gradual. This stable housing payment is especially important in times of inflation.  When each dollar earned doesn’t go as far, due to inflation, you are better off knowing that your housing payment won’t increase.

Tax Savings
Homeowners can be eligible for significant tax savings because you can deduct mortgage interest and property taxes from your federal income tax, as well as many state income taxes. This can be a considerable amount of savings because the first decade of mortgage payments is made up mostly of interest and taxes.

Debt Consolidation
As your property value increases, the equity in your home grows.  For example, if you own a home worth $400,000 and you owe $300,000, you have $100,000 in equity.  Equity gives you an asset you can leverage, meaning you can borrow against your equity to consolidate debts.  A refinance or equity loan is never an option for renters.

Instead of payments disappearing into someone else’s pocket, home owners are building equity in their own home. Each year that you own the home you pay more toward the principal, which is money you will get back when the home sells (assuming values stay constant or increase). It is like having a scheduled savings account that grows faster the longer you have it. If the property appreciates, as is often the case,  you are holding onto an asset that you may one day sell.

It is Yours!
When you own a home you are in control. You have the freedom to decorate it and landscape it any way you wish. You can have a pet or two. No one can pop in and inspect your home and nobody can ask you to leave.

Buying a home is an important decision. It is often the largest purchases a person makes in his or her lifetime. Home ownership also comes with some increased responsibilities, and isn’t for everyone. There are some disadvantages to home ownership that you should take into account.

Increased Expenses
Your monthly expenses may increase, depending on your situation. Even if the monthly payments are the same, home owners still have to pay property taxes, all the utilities, and all the maintenance and upkeep costs for the home.

Decreased Freedom of Mobility
Homeowners can’t move as easily as a renter who just has to give notice to the landlord. Selling a house can be a complex and time consuming process.

Risk of Depreciation
In some areas with over-inflated prices, there may be a risk that the house will depreciate instead of increase in value.  If you then sell the house, you may not get enough money from the home to pay back your mortgage, requiring you to retain the services of an expert short sale negotiator.

Possibility of Foreclosure
If for some reason you are unable to make your payments, you risk having the lender foreclose on your property. This can result in the loss of your home, any equity you have earned, and the loss of your good credit rating.

When considering home ownership, you need to weigh the advantages and disadvantages for yourself. If you are like most people, you will find that home ownership is rewarding, profitable, and fun.

Whether you are looking to buy, sell, or rent….please know that I am your real estate advocate.  Together we can weigh the pros and cons and make a decision that is perfect for you.


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