The Pros of Renting or Buying A Home
You hear it all the time, that age old question “Should I rent a house/condo/apartment, or is it better to buy?” There’s no “one size fits all” answer to the question of which is better, renting a home or buying a home; it really depends on your individual situation. When you rent, you are basically paying your landlord’s mortgage for him. This can rub some people the wrong way, and they ask themselves why they should pay someone else’s house payment when they could be putting that money into their own home investment every month. It’s a logical question.
There are advantages to renting a home, however. One of the biggest positives in the “rent column” is the fact that if you are unhappy where you’re renting, with just 30 days’ notice (or at the most, 60) you can pack up and make your home somewhere else. You are never stuck waiting for a house to sell before you can move to a new location.
Another advantage to renting is the lack of maintenance costs. If your water heater fails, you simply call the property manager or homeowner and the problem is fixed at no cost to you. This can be a huge stress saver, especially with an older property.
Keep in mind, it’s always best to have renter’s insurance to cover your personal belongings in case of flood or fire. Often your automobile insurance carrier also offers renter’s insurance, and many times this additional line of insurance can result in a reduced rate for your primary insurance. Sometimes, the reduced rate is equal to the cost of the renter’s insurance, basically making it free.
There are also several advantages to buying a home. When you have locked in a loan rate with a low monthly payment, you protect yourself against inflation and know exactly what you are obligated to pay out each month. This makes budgeting easier, and you never have to worry about your landlord raising the rent.
When tax time comes, you can deduct the interest on your mortgage payments as well as any costs for energy efficient home improvements you made during the previous tax year. If the law allows this in your area, you can install solar panels, rainwater collection systems, and other cost-saving devices that not only save money on your energy bills but pay you back at tax time.
If you have questions about renting a home vs buying a home, feel free to give us a call here at Integrity Mortgage (719) 638-0531, or contact us via email at email@example.com. If you decide buying a home is right for you, we are happy to help walk you through the mortgage process and help you find the right loan.