The decision to rent or buy a home can be overwhelming. There are many headlines in the news about home ownership. The most popular and beneficial recent story is that mortgage rates are at historically low rates! The average 30 year mortgage rate has fallen to 3.65% (Freddie Mac, February 2016). What exactly does this mean to a renter? Let’s take a look at the benefits of renting versus buying.
Renting allows for flexibility.
Perhaps you are unsure of how long you are going to live in a certain area. Renting from month to month allows for a move to be made quickly if you need to relocate for a job.
Renting means if something breaks, it will not need to be fixed by you!
Instead of taking a trip to Home Depot to find out how to fix that leaky faucet, you can stay put and advise the landlord of the issue.
Renting will help build and establish your credit.
By making all of your rent payments on time, you are creating a helpful history. When it comes time to apply for a mortgage, you’ll have the tools you need.
Be on the lookout for rent fluctuation. As markets become more populated, rates will increase. The average rent increase can be 5% annually but may soar higher.
Owning a home is a good investment.
With every payment made on your mortgage, you are building equity. A general rule of thumb – if you plan to live in your home for at least five to seven years, the expenses of purchasing that home are more likely to be offset by increased housing value and accrued equity. We recommend speaking to a Weichert Financial expert to learn more about the benefits and how mortgages and equity work.
Owning a home means it is yours.
While in a rental, painting and decorating may be discouraged, but when you own your home you can make it your own. Be as colorful or as simple as you want. When it comes to home design, you are in control. If the kitchen needs a redesign, you may want it tackle it yourself or select a local contractor. The sky is the limit when you customize your home to your liking.
Home ownership comes with tax deductions.
Renters are unable to reap these benefits. Property taxes as well as mortgage interest are eligible as tax deductions. The IRS will not apply a “capital gains” tax on your profits from the sale of your home, should certain requirements be met.
Buying or Renting ? Call Me at 571-405-8058 or email at firstname.lastname@example.org
Also If you are planning to place your home on the market, call me for no obligation consultation at 571.405.8058 / Elvira Jakovac
First in Customer Service…
Weichert Realtors / Old Town Alexandria VA