Buy OR Rent Property

Buying a Home is the Human Dream. It is more than a place you put your hat at the end of the day. It defines you, protects you, and prospers with you. Yes, Home Ownership is a noble pursuit, but it always starts with this first, important question: Should I buy or Rent my Home? The answer, surprisingly, is not so obvious.

Now the question of “affordability” is an important one, but that’s not the subject of this article.

5 MAGIC POINTS that you need to examine, on whether or not to BUY or RENT your next Home:

1.EXPENSES
2.COMMITMENT
3.MONTHLY PAYMENTS
4.TAX RETURNS
5.WEALTH

EXPENSES:

Renting a home requires that you give a check to the landlord each month. That’s it. You’re done. Everything else is simply taken care of for you. When you OWN a home, you are in business for yourself, and this means that you must handle all of the expenses yourself.

COMMITMENT:

Renting and Buying have different financial commitments.
Buying a home requires a long-term, financial commitment. Renting a Home simply requires that you cut a check each month you reside at the home of choice.

MONTHLY PAYMENTS:

It always appears that a renter will pay less each month on monthly payments.
Mostly our Renter’s Monthly Payments will exceed our Homeowners Mortgage Payment, in about 6 years.

TAX RETURNS:

A renter usually does receive a tax benefit from the State and Federal tax boards each year, sometimes referred to as a “renter’s credit”. But the Homeowner receives a deduction on the Interest paid on their loan. This is a huge benefit to the homeowner.

WEALTH:

It’s arguably much, much harder for a renter to build wealth. There is no built-in mechanism for appreciation, whereas the homeowner has postured themselves wisely for the future.