4 Things to Consider
Why You May Want to Buy Instead of Rent
Renting versus buying can be a perplexing question, but there are four good reasons to consider buying a home rather than renting one.
Before you make a choice, think about the following and consider getting a qualified real estate agent as well!
Owning a property gives you control over that property. Except in rare condemnation proceedings, no one is going to be able to tell you to move if you own your own home. Of course, this means you have to make all of your house payments on time and pay your taxes, but if do that, you can stay where you are indefinitely.
Sure, if you rent you may have a lease that protects your residency for a set period of time, but eventually the lease term will expire, and you may be faced with renewal at a higher rate.
If you own your home, you can remodel it to your tastes providing you are not violating any government codes. If you want to paint the interior walls purple, you don’t need anyone’s permission. If you rent, however, you will have to ask your landlord before you do anything major, or sometimes, even minor.
When you rent, for example, an apartment in Eugene, Oregon, you are paying the landlord’s mortgage. And if you’re cost-burdened student selling textbooks to make extra money, then renting might be the best move for you. This way, you don’t have to worry about property taxes—unless your lease requires you to pay any increases—and you don’t have to be concerned with making mortgage payments.
If you are late with a rent payment and you work it out with your landlord, it’s unlikely that this problem would show up on your credit report.
The problem with renting is that you are not building equity. If you have bought a property and have a mortgage, a portion of your monthly payment pays down the principal balance each month. Even if you only stay in a home for five years, you will have paid down the loan balance by a nice amount. If you rent, this doesn’t happen, and your rent money gets you nothing except a place to stay.
With the new higher standard deduction, writing off property taxes and mortgage interest may not be for you, but in certain circumstances, if you are an owner rather than a renter, you can realize major tax breaks. Renters do not get the same tax advantages that owners do.
If you own your home and a major system like your HVAC unit fails, you can be faced with a monumental expense. If your toilet becomes stuffed and you can’t fix it yourself, a plumber can cost hundreds of dollars. Don’t think that renters are in a better position than you, however, because a good home warranty will cover most of these issues and your cost can be as low as $75 per month plus a small deductible for each service call.
Some persons enjoy the seemingly hassle-free experience of renting, but if you want control, want to build equity, and are looking for some possible tax breaks, buying can be a superior choice.