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Is Buying Better Than Renting?

Thursday, January 23, 2020   /   by Burnice Villanueva

Is Buying Better Than Renting?

Today I’m discussing the pros and cons of renting versus buying a home.

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Is buying a home better than renting one? Well, it depends. With the climate of our current economy, interest rates as low as they are, and good job security, we are often finding that yes, buying is better than renting right now.

If you’re currently renting and considering buying, yet you know you’ll be leaving the area in the next few years, it may or may not be the best idea to buy if you need built-up equity for that investment. Buying can be an excellent idea for much-needed security for your family. You can also turn that house into a rental property when you leave the area.

If you’re renting a property for $1,800 per month for three years, that’s $64,800 you would spend on rent. Your return on investment may just be that you had a place to live for three years. There’s no financial gain, no appreciation, and likely no tax deductions.

Buying can be an excellent idea for much-needed security for your family.

If you buy a home and paid that same $1,800 per month on a mortgage payment and stayed there for three years, that’s nearly $65,000 you’ll spend toward your mortgage, helping pay down your principal, and giving you tax benefits. You’ll also receive a portion of that money back at the end of the year and continue to build equity on the house.

The bottom line: When buying a home you’re paying your mortgage; when renting you’re paying someone else’s mortgage.

Call us and we can help figure out which strategy may be best for you. Visit our website for a free home evaluation or to search all the properties currently listed on the MLS. Please contact us via phone or email with any other questions you may have. It would be our pleasure to help you.

  home buying