Should you buy or rent a home?
The answer often depends on your finances and plans.
What’s the best way to spend your money? How long are you planning to stay in your home? Are you changing jobs or possibly moving?
Buying a home is one of the biggest financial decisions you will ever make.
And money is an important factor when making this decision. Items to be aware of are:
- The down payment amount.
- Closing costs, insurance and taxes.
- Monthly utilities.
- Ongoing home repairs – such as the water heater, plumbing and appliances.
But there are strong reasons to buy:
- Interest and property taxes are deductible.
- As you pay down the loan principle, you will build equity, which can be an excellent asset for securing a loan or a line of credit.
- Overall, most home values increase over time, which increases the amount of equity and your return on investment when you sell your house.
- Once you pay the mortgage off, the home is all yours.
Renting is another option.
Advantages include:
- Your initial cash outlay will be smaller – often a deposit of a month’s rent.
- The money you save can be used for other investments.
- The landlord is responsible for repairs of things like plumbing or electrical.
- It’s easier to move quickly if you change or lose your job.
Drawbacks include:
- You’ll never own your home, no matter how many payments you make.
- There are no tax advantages.
- Rent could rise or your landlord could sell the property.
It’s important to do what’s right for and your financial situation. Before deciding, do your research. There are many reputable buy vs. rent comparison sites on the web.
Speak to one of our home loan officers today. We are always here to help.
