Renting Vs. Buying Is A Big Decision. It can be your personal lifestyle choice and for some people, it might make more sense for their financial situation. If you’re moving to an unknown city, have an unstable job situation, or want to test which neighborhood will feel like home, renting can be a great option.

Renting does have its advantages. Renters have no maintenance costs or repair bills. It’s your landlord who assumes full responsibility for all maintenance and repairs. If an appliance stops working or your roof starts to leak, you call the landlord. You don’t have to pay property taxes and insurance, and even your utility bills will be lower.

On the other hand, renting can feel unpredictable with high rent increases or if the landlord decides to sell the house or building. You might suddenly find yourself getting priced out of your home when your rent is going up  40%. You may have to relocate on short notice forcing you to face an unexpected financial burden, and for parents with school-age children, this might be particularly unsettling.

Building equity in your home rather than paying money toward someone’s property does pay off.

Buying could be the more stable and affordable alternative for you in the future if you consider rent increases vs. equity in homeownership.

As a homeowner, you will be building wealth over the long run due to the amount of equity you will acquire in your home. As a Renter, you will have nothing tangible to show for all those years of rental payments.

Besides equity, buying a home has other advantages. As a homeowner, you can enjoy major tax deductions from mortgage interest and property taxes when filing your annual tax returns. The savings from tax benefits are significant and in some cases make homeownership less expensive than paying rent. Though the benefits to homeownership are tempting, there is no doubt that the rental market is still strong.

The top reasons real estate agents hear from renters who chose to rent instead of buying are:

• • Lack of savings for a down payment 
  • Low credit score 
  • Not being able to afford within the area where they are currently renting.

Even if homeownership seems out of your reach right now, Lenders can provide options for loans that work for various situations and even offer incentives for first-time homebuyers.

Connect with us and our trusted Lender.  It may be the case that you can actually afford more than you think!

(…And you’ll finally be able to have the furry friend the landlord didn’t like!)