Which One is Right for You?
Both renting and homeownership have their advantages. The key to knowing whether you should continue to rent – or if you should take the next step and purchase a home – is understanding what makes the most financial sense for your life and lifestyle. Here are some of the most common things to consider when making the decision to buy or rent.
|Interest paid on both your mortgage and property are tax deductible.||Rent is not tax deductible.|
|When you’re making mortgage payments, you’re building equity in your home. At some point, this equity could be used for a Home Equity Loan or Home Equity Line of Credit (HELOC).||Renting does not build equity; thus you have no security when you take out a loan.|
|Ultimately, any home improvements that lead to an increase in property value will go right back into your pocket when you sell your home.||When your lease ends, you walk away no richer, no poorer. There is no profit to be gained.|
|You can tailor your mortgage to fit your financial needs. Choose your term: 30-year, 15-year, ARM, interest-only. There are many different options to help make homeownership affordable.||Rent cannot be customized, refinanced or even locked in. Your rent can change year to year.|
|Quality of Life|
|A Home Equity Loan could potentially pay for your child’s college education or allow you to make other important purchases for your family.||Paying rent to your landlord doesn’t build your bank account, it builds theirs.|
|Your home is your castle and as a homeowner, you can truly make it your own. Choose your paint colors, appliances, flooring, and more.||When renting, you’re very limited as to what you can do with the space. Remember, it’s not yours.|
|Adopt a pet or two!
Your pets will have their own yard space to play in.
|Pets are often unwelcome in apartments or rental homes. Even if they are allowed, their room to play outdoors may be limited.|
|Try your hand at gardening. Add a deck or patio. Customize the way your yard is landscaped.||Nurture your potted plant collection.|
|Buy a home with a basement for extra storage or a play area for the kids.||Renters are lucky to get an extra closet for storage and sometimes have to pay for extra space.|
|Finally park your car(s) in the safety of your own garage.||When renting, you’re lucky if you’re allotted a parking space. Covered parking? A luxury.|
Does Buying a Home Seem Like the Right Step to Take in Your Life?
MILES D. RUSTH
President / Senior Mortgage Banker • NMLS 84660