Advantages of Owning vs. Renting Your Home

According to Forbes, even though the gap between renting and buying is narrowing across
the U.S., homeownership is still 38% cheaper than renting. One reason is that interest rates
have remained at historic lows for an extended period of time, which makes buying a home
more affordable. In fact, the rule of thumb is that buying will be cheaper than renting as long
as interest rates are below 10%.

  That doesn’t mean that buying will always be better than renting. There are situations
where renting may be your best option:

• Bad credit may prevent you from qualifying for the best mortgage rates
• You anticipate short-term residency (perhaps job-related relocation)
• You don’t have enough saved for a down payment
• You don’t want the responsibility of maintenance and upkeep

  However, there are numerous advantages to buying and owning your own home, and most
of those advantages hit you right in the checkbook:

• You build equity in your investment
• With a fixed-rate mortgage, your monthly payment never goes up
• There are tax advantages, like mortgage interest deductions
• Making regular mortgage payments increases your credit worthiness
• Property taxes are deductible
• You can landscape and decorate to suit your own tastes
• Greater privacy (no shared walls)
• Your home’s value will appreciate over time, making it a good investment
• Pride of Ownership

A real estate professional like Colleen Donlevy-Burns can help you understand how a home
purchase can benefit you based on your personal situation. Call her today at (407) 325-2873.