Renting vs Buying

Renting

  • Buying is cheaper than Renting

    When you buy a home, you are getting more for your money. You have the option to customize your new home, among other things. IF you were to buy the same home that you are renting, in most cases the payments would be significantly less than renting. 

    In fact, a new report from real estate group Trulia analyzed the cost difference between buying a home and renting one, with a special focus on buyers ages 25-34. Trulia examined current housing prices under the assumption that “young buyers” will move every five years and can only afford a downpayment of up to 10 percent. The “Rent vs. Buy” report also assumed a 3.85 percent mortgage rate on a 30-year fixed-rate loan, itemized federal tax deductions and a 25 percent tax bracket. Even so, the conclusions are hugely encouraging

  • Equity

    Let's start off by defining Equity. Simply put Home Equity is Market Value minus Mortgage Balance. If I have lines of credit against my home, that is also deducted from the Market Value of my home. If my home is worth $400,000 and my mortgage balance is $300,000 I have equity of $100,000.

    Now, what does Equity do for you? Well it enables you for use of an additional line of credit, if needed.

  • You're paying your landlord's mortgage payment

    When you rent a home, often times, you are making payments on your landlord's mortgage. You can rent for 30 years, however, 30 years after renting, you have nothing to show for it. When buying, the payments or often less, and you have something to leave to leave to your loved ones. No matter what house you live in, you're paying someone's mortgage. It might as well be your own. Over a

  • Interest rates are low

    Even though they may creep up at any moment, it’s nonetheless a fact that interest rates on home loans are at historic lows, with a 30-year fixed-rate home loan still hovering around 4%.

  • You’ll save money on taxes

    Tax laws continue to favor homeowners, so you’re not just buying a place to live—you’re getting a tax break! The biggest one is that unless your home loan is more than $1 million, you can deduct all the monthly interest you are paying on that loan. Homeowners may also deduct certain home-related expenses and home property taxes.

  • Little to No money Down

    Probably the biggest obstacle that prevents renters from becoming homeowners is pulling together a down payment. But today, that chunk of change can be smaller, thanks to a variety of programs to help home buyers.

    The U.S. Department of Agriculature (USDA) has a program that provides 100% financing for qualified individuals.

    Are you a veteran or Active service? If so, there are programs the The department of Veteran Affairs that provide 100% financing (no money down) for active duty and veterans.

    There are many other programs available, contact us to find one that's suitable for you.

  • You’ll have something to pass down to your children

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Buying

  • You have limited or no ability to personalize your rented home

    When you rent, you have a strict set of rules and regulations that you have to abide by.

    Such as, your inability to paint, hang pictures using nails, or have dogs (or any pet for that matter), and the list goes on! You're limited on your ability to customize your home to your standards. This is all eliminated when buying. You can paint, have as many dogs as you'd like, hang pictures, replace the carpets, all to your liking!

  • You will never gain equity from renting

    As long as you rent, the only person that will ever gain equity in the property, is the landlord.

  • There are no tax advantages to renting

    Often with Homes, there are several tax incentives available. Such as those for having energy efficient equitment (such as furnaces etc). You get no tax deductions for any of that when renting.

  • You have to submit to the terms and condition of your lease agreement

    You lease may prohibit you from subletting. It may prohibit you from having people that are not on the lease staying over. It may prohibit you from having family gatherings.  Most leases limit you. Again, this goes away with buying.

Fill out the form below to find out more information on buying your own home

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