Buying vs. Renting

What's the best option for me? Let's find out!

Debating whether to buy or rent?

This is an age old battle almost every potential homeowner goes through. While at first glance renting may seem like the cheaper option, in reality, buying a home may be a better financial decision because the amount of money spent in rent over the years could be building equity and putting money in your piggybank instead of your landlord's pocket! Let's dive a little deeper as to why many Americans enjoy the benefits of homeownership.

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Why should I buy?

  • Equity: this is the portion of property that you 100% own. This is one thing you definitely can’t do while renting!
  • Tax deductions: Property taxes and mortgage interest could be fully deductible for federal and state income taxes! You also may have the chance to deduct certain fees included in your closing costs when you buy your home or when you decide to sell it. Also, if you do your research there are other not-so-common deductions you can use – contact your tax professional today to learn more!
  • Appreciation: With home prices being so low right now, it’s a great time to buy. Just think, there’s even a chance you could sell your home for more in the future. Awesome, we know.
  • Option to borrow: Having equity in your home gives you flexibility to put your money to work- maybe a line of credit or a loan for other purchases. Your future equity gives you buying power. Ever think of doing home improvements? This is a great way to do just that!
  • Freedom: Remember that landlord we talked about earlier? Yeah, he never lets you do what you really want to do to the place. Owning your own home gives you the freedom to do whatever you want. Want to paint your walls in bright pink polka dots? You can do it as a homeowner!

Why I should Rent:

While there are many great reasons to buy there are still benefits to renting. Let’s check out the following:

  • No maintenance: Window leaking, pipe breaks, mowing the yard? All of these problems are handled by your landlord! No need to look up how-to directions on the internet.
  • Flexibility: If you don’t end up loving the area you live in or the annoying neighbors next door, you have the ability to move quickly.
  • Uncertainty in your career and income: These two tend to go hand-in-hand. A career change could have you living in another area, making renting easier to get up and leave when needed. Also if you have a decrease in income this could impact your ability to pay your mortgage.
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Renting vs. buying should be a decision that is made with the future in mind.

Renting isn't a horrible option, it is an alternative to buying that could allow you to save for your down payment. Then you could use your savings to buy a new home in a few years. Whichever you decide is best for you, let one of our mortgage bankers talk you through the options! Just know that buying will provide long-term benefits that renting can’t. Becoming a homeowner may be within your reach!

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