How does buying compare to renting?
A. Renting offers a lifestyle that’s nearly maintenance-free. That may appeal to you, but consider that renting offers you no equity, no tax benefit, and most likely no protection against regular rent increases. Several financing options hold special advantages for first-time buyers or families with limited cash reserves. FHA-insured and VA-guaranteed mortgages can minimize or even eliminate your down payment. ^top Q.
Buying and renting are very different propositions. The primary advantage to renting is that you are generally free of most maintenance responsibilities and have the freedom to move without too much effort at the end of your lease period. However, by renting you lose the opportunity to build equity to increase your net worth, take advantage of available tax benefits and protect yourself against rent increases. Also, there is a very real personal satisfaction that results from owning a home — something that is all yours and reflects your personal style.
Renting offers you a basically maintenance-free lifestyle, with few unexpected repair bills. It does not offer any protection from rent increases, little tax benefit and no growth in equity. Homeownership offers tax deductions to offset real estate taxes, and loan interest points. In addition, most homes appreciate in value over time. 4.
Renting offers a lifestyle that’s nearly maintenance-free. That may appeal to you, but consider that renting offers you no equity, no tax benefit, and most likely no protection against regular rent increases. If your rent has averaged $700 a month for the last ten years, you’ve spent $84,000 with nothing to show for it. Isn’t it time you invested in yourself instead of your landlord? Several financing options hold special advantages for first-time home buyers or families with limited cash reserves. FHA-insured and VA-guaranteed mortgages can minimize or even eliminated your down payment. You may also consider a lease-purchase agreement, or borrow cash for a down payment from life insurance, profit sharing or retirement account. In addition to tax deductions you’ll likely receive that can partially offset the cost of real estate taxes, insurance and home maintenance, your home may appreciate in value. And thanks to recent changes to the tax code, but subject to certain restrictions up t
