Renting vs. Buying
With the flexibility of low cost mortgages and decreasing interest rates, you'll hardly see a difference in your monthly payment whether you buy or rent your home. This seems to imply that more people would be interested in buying these days, but the fact is most people simply aren't ready for the commitment it takes to be a home owner. Most mortgages last for about 30 years and not everyone knows where they'll be in even 5 years. However, there are a lot of benefits for owning your home over renting and we think everyone should at least consider the option if they have it. Here's a look at some buying vs. renting comparisons:
- Build equity when you buy: When you're renting a home or apartment, every dollar you put toward it goes to the owner. But when you buy a home, that house belongs more and more to you as you make payments toward it. Eventually, it will belong to you completely and you can do whatever you want with it. If the home's market value increases, you could find yourself making money off it.
- Get a tax break: When you own a home can you potentially get a tax break on the mortgage interest. Unfortunately, there's no such option for those that rent. In most cases, you can deduct the mortgage interest on your tax return which could lead to over three thousands of dollars in savings. You'll want to contact your financial advisor for further information.
- Pride of ownership: Many people describe a certain pride or pleasure they take in owning their home. The home belongs to you and you alone, so you have the freedom to do what you want with it. Paint the walls, renovate, you can do what you want without worrying about the consequences from a landlord.
- No rate increases: If you are able to secure a fixed rate mortgage, you can take comfort knowing that your mortgage's interest rate will always stay the same. However, there are no guarantees when you're renting. Many apartment complexes increase their rent every year, sometimes over a $100.
- More space: Compared to renting an apartment, owning a home offers you and your family a much greater living space. They have their own backyard and front yard, and it's increasingly easy to get a pool or spa. Home owners also have the benefit of privacy too, as there's no one living in the same housing structure as them. Many renters find themselves kept up all night by their noisy neighbors that they can clearly hear through the thin walls. If you have any questions, please read our FAQ page.
