Before purchasing a home, it is important to know the benefits of renting vs. buying a home to ensure you make the choice that is right for you.
Reasons to rent
Flexibility Renting a home gives you time to discover communities and neighborhoods for your family. Also, since you are not committed to homeownership, you can adapt to a career or income change more easily.
No maintenance costs When you rent a property, the landlord is generally responsible for all maintenance and repair bills.
Fixed rent amount
Since rent amounts are usually fixed for the span of the lease agreement, you know the amount of money you owe every month. This allows you to budget your money more efficiently than you would if you were a homeowner paying property taxes that tend to fluctuate yearly.
Delinquent credit If you have poor credit, you can begin to build a positive credit history by paying your rent on time each month. A history of on-time rental payments can improve your borrowing ability when it’s time to qualify for a mortgage.It is important to get the home professionally inspected to ensure that you are aware of the necessary repairs prior to purchase.
Reasons to buy
Equity When owning your own home, you can increase your degree of ownership with every mortgage payment. If the equity of your home grows greater than 20%, you may be able to borrow against your equity in order to pay for a major purchase in the future.
Decision-making control You have greater flexibility to improve your home and make changes that will improve the value of your home.
Tax deductions If you own your own home, you may be able deduct your mortgage interest and property taxes. (Please consult your tax advisor.)
Certainty You don’t have to worry about your lease ending and do not have to worry about the actions of your landlord.