Rent or buy? This is one of the toughest questions for any prospective home buyer, and the answer? The good news is that the answer is up to you. The bad news is that it’s easy to imagine yourself looking back and wishing you hadn’t spent so many years as a renter, or that you hadn’t bought your house – or perhaps that you’d done so at a different time in your life.
This important decision is going to depend on several different factors. From the local market forecast to your income to your financial goals over the years, you need to weigh multiple considerations before deciding.
Renting has many inherent advantages. As a tenant, you aren’t responsible for paying taxes or for upkeep and maintenance of the property. Leaky roof? Call the landlord. Annoying neighbors? You can give a month and move to the other side of town. But at the same, what about all that money you pay in rent every month? That’s gone.
But as a home owner, you build equity over time, the home value may increase over time, you get unlimited freedom to customize your living space, and you may reap tax benefits. Plus, a home is one of the safest and most lucrative investments you can buy.
If your lease is up for renewal, this could be a good time to consider the benefits of homeownership instead. Below are just a few reasons why:
Rents Are Rising Quickly – Higher priced home values drive higher rent costs. Realtor.com® economists predict a 7.1% growth in national rent in the next 12 months.
Paying for Your Landlord’s Equity – As home prices rise, so does the equity in the property. As a renter, you are making the loan payments for your landlord, you could pay yours instead.
You Get What Your Get – A homeowner can paint, renovate, and customize the home to their heart’s content. A renter must live with the choices the landlord made about the interior and exterior of the property.
No Tax Benefits – Homeowners can deduct the home mortgage interest and property taxes off their gross income, offering huge tax savings.
Whether you’re looking for a condo or an ultramodern home in the South Bay, I can help you find what you want.
Get in touch today.