Renting Vs. Buying a Home

It is time for you to look for a new home! Where do you start?

Start by defining you goals. Consider where you want to live, the features and amenities you are looking for, what you can afford, and a realistic date for having the money you will need.  Another decision you will consider is whether you are renting or buying your home. Purchasing a home is a huge investment; you will need to take the time to weigh the benefits of renting versus buying a home.

 

Renting Your Home Buying Your Home
  • The initial cost of renting is usually lower than making a down payment on a house
  • You probably will not pay property taxes and upkeep directly
  • With no money tied up in real estate, you should have more savings to invest
  • You run no risk that the value of your property will go down
  •  You can deduct the interest on your mortgage and your local property taxes on your tax return
  • You build equity as you pay off your mortgage
  • You may be able to borrow against your equity and deduct the interest payments on the loan
  • Your house may increase in value and you may make a profit should you decide to sell

 

Source: Morris, A Woman’s Guide to Personal Finance