There is always that underlying question when the time comes to decide if you want to buy or rent a home. There are both benefits and risks to both so here are some tips and facts to help you get through that.
Benefits of Renting
- Mobility/freedom to move around
- No fluctuation in monthly housing expenses
- Your landlord pays for maintenance
Risks of Renting
- You don’t build any equity
- Rent could go up over time
- Limited sense of home stability/permanence.
If you're a college student or someone who moves around a lot renting a home could be the best bet for your bucks.
Benefits of Owning
- being able to own assets and bring in equity is best for creating wealth for your family and community
- You build equity over time
- Certain tax Benefits,
- Freedom to customize your living space
Risks of Owning
- Responsibility for maintenance and repairs which requires time and effort
- Home value may decrease
- Tax laws could hamper tax benefits.
Many consumers when going through this decision work through the renting and buying five-step process which is . . .
1. Decide how long you plan to live in the same place
2. Estimate the cost of renting Vs. buying,
3. Figuring out the points of parity and difference when looking at mobility Vs. putting down roots and deciding which is more important to you,
4. Weighing the risks of renting and buying (mentioned above)
5. Lastly, assess your financial situation.
It always helps to talk to a professional when making this decision. Contact us today so that we can walk through the process with you and answer any questions you may have.