How does purchasing a home compare with renting?
When you purchase a home, you can build equity (ownership) in the property that you get back when the property is sold. Also, you may deduct the interest that you pay on your loan every year (consult your tax advisor). Home ownership allows you to enjoy the freedom to decorate and landscape according to your tastes. Although renting may be necessary temporarily, you will not be able to get any of your rent payments back when you move. Once rent has been paid it is gone for good. Start saving up a down payment today so you can become a homeowner tomorrow. There are some loans available that do not require a down payment depending on your situation. Call us today for more information.
The two don’t really compare at all. The one advantage of renting is being generally free of most maintenance responsibilities. But by renting, you lose the chance to build equity, take advantage of tax benefits, and protect yourself against rent increases. Also, you may not be free to decorate without permission and may be at the mercy of the landlord for housing. Owning a home has many benefits. When you make a mortgage payment, you are building equity. And that’s an investment. Owning a home also qualifies you for tax breaks that assist you in dealing with your new financial responsibilities- like insurance, real estate taxes, and upkeep- which can be substantial. But given the freedom, stability, and security of owning your own home, they are worth it.
