To Rent, or to Buy a Home

Today we are discussing things you should consider to help you decide if you should rent or buy a home. While owning a home has wonderful advantages, it is one of the largest purchases most people make. Here are some considerations to think about that will help you make informed decisions. If you own a home you’ll have added financial responsibility, you will need to pay for utilities, maintenance, and home repairs. Those regular expenses are on top of your mortgage payments, property taxes and homeowners insurance. You need to take all precautions when buying a home to make sure there are no hidden issues and that all issues are in the open and the price has been adjusted suitably.

 Do not rush into buying out of excitement, that’s where they get you sometimes. When you have invested in property there is potential risk, real estate may increase in value over time but not always. Your property value can also go down so do your research and make sure you have a real estate agent that is highly recommended with great knowledge on home buying, who can keep you informed with good advice. Home ownership has tighter ties; as a renter, you can pick up and

move with short notice. When you own a home, selling it before you move is more complicated.

Renting may require a smaller monthly expense than a mortgage payment, which includes principal, interest, taxes, and insurance. In some cases, renting may free up

additional cash that allows you to invest or save. However, over time the cost of renting may outweigh the cost of buying a home. Buying a home has many benefits.  You’ll become a part of a community, experience security of owning the roof over your head and have the opportunity to create a home that meets your needs and style. There are many things you can modify on your home and you’re the only one who has to give permission.  You may also enjoy opportunities to build home equity. Unlike rent, the principal portion of every mortgage payment you make has the potential to increase equity in your home.

 When you buy a home you can gain potential tax benefits. Your mortgage interest and real estate property taxes are usually deductible when you file your income tax returns. Consult a tax advisor regarding the deductibility of your interest.  As a mortgage payer, you have an increased opportunity to build credit by making on time mortgage payments. Buying a home can really help you create a strong credit history as you prove monthly that you’re reliable in paying on your mortgage.  Another perk of buying your home is that you get to be your own landlord.  When you own your home, rent increases, cancelled leases and other unexpected tenant hassles will be a thing of the past. When choosing weather to rent or buy a home you really need to look at both options carefully. If you have questions or concerns, consider talking to a financial professional.