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Rent vs Buy

 

The decision whether to rent or to buy can seem daunting at first.  Let's dive a little deeper into each possibility:

 

Pro's of Renting:

  • Renting provides more flexibility if you need to move quickly or only want to stay where you are for a short period of time.
  • Your landlord will be responsible for any necessary repairs.
  • There is a smaller amount of cash needed upfront.

 

 Pro's of Buying:

  • Owning allows you to build equity. Whether you are buying or renting you will be paying someones mortgage payment--why not make it yours?
  • Fixed mortgage payments can't go up (even if inflation occurs).  Lock in a low rate today and you'll be set.
  • Home ownership has great tax benefits! You can deduct mortgage insurance (among other tax benefit possibilities).
  • You have complete control over your living space. 

 

 Is now a good time to buy?:

Consider this: Waiting for the absolute ideal housing market is futile. The only way to know that the market has hit rock bottom is when in starts to rise again--by that point you've missed a great opportunity to buy a home. The market will always be fluctuating and unless you have a crystal ball up your sleeve there is no way to know anything for certain.

 

Fact or Fiction?: I need to have a 20% down payment saved up in order to purchase a home.

Fiction. Is it preferable to have a large down payment? Sure, and you won't have to pay for mortgage insurance if you can do so. But that just isn't realistic for many first time home buyers.  Thankfully there are many loans that allow you to pay little or no money down so that you you can get into a home and start building equity to go towards future homes.