Buying VS. Renting

Home ownership is often referred to as “The All American Dream.” However, buying a home is a big responsibility, financially and emotionally.  Real Estate is a great investment, and perhaps the number one source of wealth-building for families.  Owning a home has many benefits. After making payments on your mortgage you start to build equity. This is considered an investment. Owning a home also qualifies you for tax benefits that may assist you in coping with your new financial responsibilities.  This includes homeowners’ insurance, real estate taxes and upkeep. Home ownership may not be for everyone though. Owning a home is a huge financial commitment. From the buying the home to making years of monthly mortgage payments, real estate taxes, property insurance, and maintenance costs. When you decide to purchase a home, you accept the responsibility for paying for any and all expenses. An advantage of renting a home is not being help responsible for most maintenance and the flexibility of moving when you decide. However by renting, you are losing any chance to build equity. Also, you may not be free to decorate without the permission of the landlord, and may be at the mercy of the homeowner for your housing needs. A tax advantage for home ownership is the mortgage interest and real estate taxes are tax deductible. In many cases, the amount of money a renter spends is about the same or less than the amount a homeowner spends on mortgage.Featured image

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