Should I Rent or Own
Owning a home is the American dream. But for some individuals, renting a property can
be a wise choice, bot financially and personally. Which is right for you? Consider the
|Which Offers Lower Monthly Costs?
|In many locations, rent is still affordable. In others, it can be higher than a
comparable mortgage, especially when you consider that mortgage interest and property
taxes are tax deductible. If your potential monthly mortgage payments are lower than your
monthly rent, it might be time to buy.
|Which offers more value?
|A home is an investment. A rental property is an expense. Home ownership allows you to
build up equity over time, which can make buying a home a better value even though it
might see more expensive in the short term.
|Which offers more stability?
|As a renter, you're subject not only to rising rents, but also to the sale of your
building. As an owner, your home belongs to you until you're ready to move on.
|Which allows you to benefit from mortgage interest?
|You can deduct mortgage interest from you income tax if you buy a home. If you rent,
your landlord gets the deductions and uses your rent to make the mortgage payment.
|Which allows you to deduct real estate tax?
|You can deduct real estate taxes on your tax return when you own. If you rent, your
landlord takes the tax deduction.
|Which gives you good credit?
|Home ownership is a major indicator of financial responsibility and stability, which
gives you the chance to build a strong credit history.
|Which helps you establish roots?
|Unlike home owners, renters are more mobile and often don't establish roots in a
|Which helps you build a retirement nest egg?
|Homeowners can enjoy tax-free profits up to $500,000 from the sale of a primary
residence that they have occupied for to of the last five years, if they are married and
filing jointly. If an owner is single or married filing separately, he or she can enjoy
tax-free profits up to $250,000.
|Which gives me more investment benefits?
|Home owners build equity over time, which you take in cash when you sell your home.
|The profits from home investments are often greater than from many other investments.
|Because you can borrow against it in most states, home equity can be a source of
|Land appreciation adds to the value of your home.
It might seem like a long way from renting to owning. But many times, a little expert
advice and creativity are all you need to make the leap. If you're ready to own, talk to
Angela Burdick, CRS. As an experienced REALTORŪ with advanced training in residential
sales, Angela can introduce you to purchase and financing options you may not have
considered, options that can put the home of your dreams within your grasp.
I hope that this information has been helpful to you. If
you have questions about anything at all, don't hesitate to contact me by phone, or by e-mail.