Does it Makes Sense to Rent or Buy Your Home?
Are you looking for a good reason to get out of the rent race and become a homeowner?
Compare your rent with a mortgage payment on a similar size property. If you want a larger home than your current one, use the rent that property would require instead of what you’re currently paying. If it’s considerably cheaper, you may not need any further encouragement.
Other Benefits of Home Ownership – It’s Not Just the Payment
By the time you consider the principal reduction, appreciation and tax savings, your monthly cost of housing could be much less than the rent you’re paying.
The principal reduction included in each payment is like a forced savings account that increases as your mortgage balance decreases.
Your equity in the property will also grow due to appreciation. The equity is part of your net worth and an investment in your family’s future.
Income Tax Savings
The income tax savings can be an additional financial consideration if the combined interest and property taxes exceed the allowable standard deduction.
You’re Already Paying for the Home – Are You Paying for Yourself or Your Landlord to Own It?
Trends are showing that both tenants and homeowners are staying in their homes longer. It’s been said that whether you rent or own, you’re paying for the home. Do you really want to buy the home for your landlord? Study this example, then check out your own numbers on a Rent vs. Own.