Renting Vs. Buying

The choice between buying or renting a home is one of the largest financial decisions any adult will make in their lifetime.  Renting is nice for short term living if you are uncertain about where you want to settle down, however, you are most likely paying more monthly than you would if you purchased your own home.  Here are a few advantages to buying a home over renting.

rent-versus-buyLOW INTEREST RATES – Mortgage interest rates are near historical lows. This means your monthly mortgage payment could be quite a bit less than what you are paying in rent! There is uncertainty if we will see increased rates in 2015 or if rates will continue to stay low, so be sure to capitalize on the opportunity to lock in a low rate NOW!

STABILITY – Your home is your very own place where you don’t have to worry about landlords or sharing a wall with a neighboring tenant.  With the rental market being so competitive monthly rent payments are at a premium! Don’t get stuck over paying monthly for your rental when you can save money and buy a home.

INVESTMENT & EQUITY – Over time, you will add equity to your home and hopefully the value of your home will appreciate overtime if you’ve invested in home improvements. Having a mortgage that you pay on time every month will build your credit and can be used as a financial asset.

TAX DEDUCTIONS  – When completing your property taxes, you are able to deduct mortgage interest as well.  Do your research and ask a professional about what other tax advantages could be utilized by you as a homeowner.  Depending on your situation, there are other options as well to get money returned from your home investment.

Numerous factors influence the decision to buy a home, from job and income stability to emotional readiness and market conditions.  If you’re wondering how current home prices and mortgage rates factor into your home search, contact us about your options.  We can sit down with you, look at your financial readiness, discuss market trends, and explain your loan choices to you.