Home ownership typically comes with a mortgage. Before you jump into debt, determine if buying a home or renting one is the right choice for you. Here are some factors to consider as you comtemplate home ownership.
|For Sale||For Rent|
|Taxes||Real estate property taxes and interest paid on the mortgage may be tax deductible||Rent is not deductible|
|Equity||Owning a home is a form of savings, as equity increases with each payment||Renters do not accumulate equity; once they pay their rent, the money is gone|
|Investment||A home is a valuable investment, particularly if home values are increasing||Renting is not an investment opportunity for tenants|
|Customization||Homeowners can decorate and make changes according to their personal preferences||Renters must consult with their landlord to make any small to moderate changes to the dwelling|
|Responsibility||Owning a home involves a long-term financial commitment||Renting involves a financial commitment only for the duration of the lease|
|Affordability||Buying a home usually requires a significant outlay of cash to cover the down payment, closing costs and other expenses||Renting is usually much less expensive than buying a home, at least at the outset|
|Relocating||Relocating is much more difficult when a house must be sold||Relocating is usually much less complicated for renters|
|Maintenance||Maintenance and repairs are the homeowner’s responsibility and can be expensive and time-consuming||Maintenance is the landlord’s responsibility|
Top Reason's People Buy Homes
The America dream of owning a home continues to be alive and well. According to a recnet Gallup poll, either out of 10 adults either own a home or plan to buy one in the future. Here are the top five reasons people buy homes.
Owning is an investment
Chance to build equity and credit
Smarter than paying rent
More cost-effective than paying rent
Financial security and stability.
Belief in home ownership
Don't want to live in a rental
Better place for the family
Ability to do what they want
Pride of ownership