Renting Or Buying A Home: What Is The Better Choice For You?

When deciding whether you should be renting or buying a home, there are many pro”s and con”s to each decision. Here are just a few things to consider.

People that rent are usually not allowed to design their living space to their tastes, like putting in different flooring or putting up wallpaper.

When you rent have to pay every month for rent, but that money will not go towards home ownership.

You”re also making rent payments, not mortgage payments. Considering this, you won”t be able to deduct mortgage interest from your taxes.

Up-front costs can be less when renting. The security deposit is the biggest up-front cost you probably will incur. After you”re out of the place, you get that money back if the apartment is in good condition.

People who rent usually don”t have to do the work in keeping up the apartment. If you”re lazy you don”t have to fix the water heater or a leaky faucet. Repairs are taken care of.

If you move, you take responsibility to sell your home.

It”s also your responsibility to maintain the place and take care of the upkeep and repairs.

Homeowners build equity if their home appreciates in value. The home is usually the most prominent financial asset and its value can be increased by things like renovations, inflation and the location.

Part of the money you pay towards your mortgage every month gets put toward your principal. You build equity every time you make a mortgage payment.. There are also a bunch of tax deductions you are eligible for, such as mortgage interest is tax deductible*.

Another advantage to buying a home is that you don”t have to have a large amount of up-front costs. Some loan programs that allow you to buy a home with little or no down payment. There are some loans that even let you to buy a more expensive home that may have not fit in your budget originally.

Because you own your home, you can design and decorate to your heart”s content. If you want to remodel the kitchen or bathroom, the sky is the limit. This is good news for the value of the home also, as the more you upgrade, the higher the value of the home goes.

Ultimately, it”s up to you to weigh the advantages and disadvantages of renting and buying. You must look at your financial and home situation to see which makes more financial sense for you.