Buy vs. Rent a Home
Deciding whether to rent or own a home is a decision many people face as they are evaluating personal goals and current life situation. Renting or buying a home can both have its own advantages. Although in our opinion we feel buying a home typically will get you the greatest return on your investment, there are other factors to take into consideration when evaluating if home ownership or renting is right for you. Check out some these perks to consider before you choose to rent or buy your home.
Lower Maintenance Costs
When renting, tenants are typically not responsible for maintenance in and around the rental property. Landlords are accountable for fixing leaking faucets, garbage disposals, lawn and common area upkeep and other items around the property that requires regular care.
No Financial Surprises
Although rent can slowly increase year after year, typically on a monthly basis renters can expect their fixed rent payment and utility bills. They don’t have to worry about large unexpected costs such as the furnace breaking, leaking roofs or bug infestations because the landlord is responsible for these large ticket items.
No Market Risk
A home purchase can be thought about as an investment. Home owners put a down payment and monthly mortgage payment in hopes to increase their equity especially when the home’s value rises with the market. However sometimes the home’s value can decrease leaving the homeowners underwater in their mortgage where more money is owned than the home is worth.
Being able to opt of out lease and pick up and leave for a career opportunity is a small luxury renters have opposed to homeowners. Although there may be a fee associated with early lease termination, it’s better than having to worry about whether your home will sell in a timely manner.
As a homeowner, you can deduct on your federal and state income taxes the amount of mortgage interest and real estate taxes you pay each year if you itemize deductions. Contact a tax professional for more information.
Once an Owner, Always an Owner
Your first home often leads to a superior second home. Owning and properly maintaining the property also offers a sense of fulfillment and pride. Enjoy the feeling of stability in the owning of your own home.
Long-term home ownership can provide beneficial retirement security through the growth of equity.
Style Your Home Your Way
Renters have a hard time being able to customize their home. While homeowners can change their homes to meet their personal needs and style
A House You Can Afford
When you pay your mortgage, you are building equity in a home of your own. Equity is the portion of the property you actually own. Equity increases by paying your monthly payments, and your home may also appreciate in value over time.
What Should YOU Do?
Owning a home can have amazing advantages over renting, but depending on your current life situation and the amount of responsibility you are willing to take on, renting could be a better option for you.
It is important to remember that when are ready to take the next step into home ownership, the Mortgage Advisors at Absolute Mortgage are right here ready to answer questions and guide you through a smooth home process.
Contact Us Today
If you are ready to make your move to home ownership!