01/13/2023
Renting vs. Owning: One of the most common questions in real estate is whether it’s better to rent or own your home.
The truth is, whether you choose renting or homeownership is completely dependent on your financial situation, lifestyle & personal goals.
Here are some things to consider:
Just because you are renting does not mean you are “throwing money away.” You will have to pay to live somewhere one way or another. Renting can provide flexibility, predictable monthly expenses and reliable maintenance.
However, rent prices are constantly increasing & your lease is subject to your landlord maintaining ownership.
Homeownership is one of if not the best wealth building asset & provides both tangible & intangible benefits. Tangible benefits including tax deductions & equity. Intangible benefits including a sense of stability & the pride of ownership.
On the other hand homeownership involves a long term time commitment & can generally be more costly than renting as it is associated with several costs not involved in renting.
Costs including, but not limited to:
- Large upfront costs
- Property Taxes
- Homeowners Insurance
- Trash Pickup
- Water & Sewer
- Maintenance of any kind
It is also important to note that in the first few years of a long term loan, interest can make up a large portion of your monthly payment which doesn’t go towards building equity in your home. (Interest costs can be recouped in tax deductions.)
The costs of renting vs. buying are both subject to the market that you live in. Ultimately whether you rent or buy is dependent on your financial situation, so it is imperative that you understand the benefits & costs associated with both. You also want to have a good understanding of your financial situation & your debt to income ratio before considering buying a home.
What questions do you have about homeownership?
Comment Below!
Contact me today for a free consult!
LifePoint Real Estate
Kaila Mathis, Realtor®
[email protected]
Kaila.lpohio.com
216.496.6102
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