|
Renting vs Buying :
What's right for you?
| Owning a home is the American dream. But for some
individuals,
renting a property can be a wise choice, both financially and personally.
Which
is right for you? Consider the following:
|
|
-
Which offers lower
monthly costs?
In many locations, rent is still affordable. In
others, it can be higher than a comparable mortgage, especially when you
consider that mortgage interest and property taxes are tax deductible. If
your potential monthly mortgage payments are lower than your monthly rent,
it might be time to buy.
You can use our Rent vs. Buy
Calculator to help
you figure your monthly payment.
-
Which offers more value?
A home is an investment. A
rental property is an expense. Home ownership allows you to build up equity
over time, which can make buying a home a better value even though it might
seem more expensive in the short-term.
-
Which offers more stability?
As a renter, you're subject
not only to rising rents, but also to the sale of your building. As an
owner, your home belongs to you until you're ready to move on.
-
Which allows you to benefit from mortgage interest?
You
can deduct mortgage interest from your income tax if you buy a home. If you
rent, your landlord gets the deduction and uses your rent to make the mortgage
payment.
-
Which allows you to deduct real estate tax?
You can
deduct real estate taxes on your tax return when you own. If you rent, your
landlord takes the tax deductions.
-
Which gives you good credit?
Home ownership is a major
indicator of financial responsibility and stability, which gives you the
chance to build a strong credit history.
-
Which helps you to establish roots?
Unlike home owners,
renters are more mobile and often doesn't establish roots and ties to a
community.
-
Which helps you to build a retirement nest egg?
Homeowners
can enjoy tax-free profits of up to $500,000 from the sale of a primary
residence that they have occupied for up to two of the last five years. If
they are married and filing jointly, he or she can enjoy tax-free profits of
up
to $250,000.
|
|
It might seem like a long way from
renting to owning. Buy many times, a little expert advice and
creativity are all you need to make the leap.
If you're ready to
own, contact Connie
Killingbeck. As a experienced REALTOR, she can introduce you to
purchasing and financing options you may not have considered... options that
can put the Home of your dreams within your grasp.
|
|
Home Ownership
Pays.
No questions about it, home ownership is a big investment, maybe
the largest you'll ever make. But over time, it's an investment that pays for
itself many times over.
Here's how:
|
|
Tax Advantages:
-
Mortgage interest is tax deductible.
-
Real estate taxes are tax deductible.
-
Local tax benefits are available in many
areas.
-
You can enjoy tax-free profits
of up to $500,000 from the sale
of a primary residence that you have occupied for two of the last five
years, if you are married and filing jointly. If you are single or filing
separately, you can enjoy profits of up to $250,000.
Investment
Benefits:
-
You build equity over time, which
you can take in cash when you sell
your home.
-
The profits from home investments are often greater
than
from many other investments.
-
Because you can borrow against it in most states, home
equity can be a source of emergency funding.
-
Land appreciation adds to the
value of your home.
-
For many, home owning is an important part of retirement
planning.
Personal
Satisfaction:
-
You gain more living space.
-
You enjoy the satisfaction and pride of ownership.
-
Home ownership is, for many people, a sign of independence
and achievement.
courtesy of Certified Residential Specialists
(CRS)
|
