The recent housing bubble has sent the price and demand for rentals soaring. Along with low interest rates, new data shows that owning a home can be less expensive than renting. Homeownership may not be for everyone but it could be. If you are on the fence about whether to rent or purchase then check out this calculator to help you decide.
Stability: You no longer have to worry about you rent increasing. With a fixed rate mortgage, increases in insurance and property taxes are the only way your monthly payment will increase. This is nice as rental prices tend to increase with each renewal.
Equity: Renting does not provide you any ownership. When you pay a mortgage, you increase your degree of ownership in your home with every payment. Owning a home is most people’s greatest investment which adds to their net worth. Paying rent is benefiting the financial investment of your landlord, not you.
Tax Deductions: Mortgage interest and property taxes are income tax deductable which will lower your tax burden. When you rent, a portion of your rent is being paid to the landlord’s taxes and interest but you are unable to benefit from those payments on your income taxes.
Control: Owning your own home allows you to customize your living space however you like.
Pets: It has become increasingly difficult to be both a pet owner and a renter, especially with larger breed dogs. Owning your own home will give you the freedom to have the size and quantity of pets that you desire without having to incur insane pet deposits!
Maintenance: Homeowners are responsible for repairs when things break. Renting puts the burden of repairs onto the landlord.
Flexibility: Leases typically run from year to year. Moving to be closer to work or school is far more simple while renting rather than selling your home and buying a new one.
Amenities: Apartment complexes often come with swimming pools, workout rooms and playgrounds. Having these options in a home can get very expensive.
Down Payment: Saving for a down payment may be too difficult. However, there are some government programs that allow for low or no down payment mortgages.
Poor Credit: Renters often believe that their only option is to rent due to their poor credit. People are often unaware of their credit score. Check your score at www.freecreditreport.com. There are programs available to you to help improve your credit scores and make your dreams of home ownership a reality. It is never too late to start so let’s work together to get things in order so you can buy when you are ready.