You have been renting and are considering purchasing a home. There are questions you should ask yourself to determine if you should rent or buy.
- How long do I intend to live in the area?
- Do I take pride in ownership?
- Do I need the deduction on my income taxes?
- Do I want to be responsible for maintenance or would I prefer to turn that task over to someone else?
- What would I do if the landlord raised the rent or evicted me at the end of my lease?
- Does the status of owning a home appeal to me?
- Can I find rental property that meets my needs for location, size and style within my price range?
Advantages of Buying
The money you put into the down payment of your purchase, as well as the principal paid on your note is equity. The process of paying principal on your note is as if you were putting money aside into a separate account. If you live in your house for several years there is also the possibility that values will rise. When you sell your home, you can recover your down payment, principal paid and any value increase there may be.
If you rent, all your payment goes toward creating equity for the landlord and you have basically given your money away with no return.
The interest and taxes you pay on your home are tax deductible items. With these amounts you might have enough deductions to "itemize" on your tax return and reduce your taxable income.
For More Help:
If you are still not sure if you are ready to purchase a home or are unsure what your next step towards purchasing should be, check out the following link: