Buy Vs. Rent: What’s Best For You
No one likes to throw money away. Sometimes when renting, that’s what it seems like you are doing. Buying vs. renting is an age old discussion, but what it really comes down to is what is best for you. Whether you want a new home because of the spacious backyard, a secure place to raise your children or simply the fact that it can be cheaper, make sure you know the factors driving your decision to buy. For most people, buying makes more sense. On the surface, the two can seem very similar. Both options require monthly payments to ensure there is a roof over your head. However, only with buying will the monthly payments end. It may take several years, especially since most mortgages are financed for 30 years, but eventually that house will be paid off and it will be yours. With renting, the monthly payments never stop and the money never amounts to anything. Another benefit of owning a home is the potential for tax breaks. The mortgage interest and property tax portions of your mortgage payment are tax deductible. If you currently itemize deductions on your taxes or are close to being able to itemize them, you will likely receive additional tax breaks when purchasing a home. To make a house feel like home, most people want to make their own personal touches. Maybe change out the kitchen cabinets or even replace the tile in the bathroom. When renting, changing the house or apartment is often not allowed. If it is, it usually has to fit in the regulations the landlord creates. Some landlords won’t even let renters paint the walls of the house. With buying, the home is completely yours to make whatever changes you’d like. Feel free to do something as simple as updating the hardware on the kitchen cabinets, or go big and paint every room a different color! With renting, there is no guarantee the rent will stay the same. Most rent prices are rising and while you may be able to afford it now, there is no telling what will happen when your lease ends. However, with a home, you can generally expect the value of the home to rise, but not the payment. In the latest Home Price Expectation Survey by Pulsenomics, experts project home values to appreciate by a cumulative total of 18.1 percent by 2019. For example, if you purchase a home now valued at $250,000, experts expect it to be valued around $284,115 by the start of 2020, an increase of more than $34,000! If you select a fixed-rate mortgage, your monthly payment will not change despite the increased value of your home. Finally, one of the main reasons buyers choose to purchase a home is for intangible, non-financial reasons. Buying a home allows you to put down roots, make memories and become part of a community, among many other emotionally satisfying things, such as feeling safer, more responsible and happier. If you’re ready to make the move to a new home, contact us at Dragas today!