Owning vs. Renting can be a confusing decision. There are advantages to renting when we take that first step towards independence, such as less responsibility when dealing with repairs and learning how to budget your finances properly. However, there will come a time in your life when homeownership is the right choice for you and your family.
Presenting five advantages of homeownership:
1). You can build equity in your home – in an apartment!
2). The interest portion of your mortgage payment may be tax deductible* – No portion of a rent payment is tax deductible.
3). The principal and interest payments of a fixed-rate mortgage never increase – Rent payments almost always increase when the lease is renewed.
4). In a single family home, you have more privacy and don’t hear our neighbors as much – In an apartment, you share walls and the floor or ceiling or both with your neighbors, which can be noisy.
5). You have the freedom to decorate, make improvements and add security features in your own home – In an apartment or rental property, you have to live with what the landlord provides.
*consult your tax advisor for complete details
Renting – NONE
Owning – YES – there may be tax deductions for mortgage interest paid, please consult with a tax advisor.
Renting – NONE – you can be given a notice to vacate the property.
Owning – YES – this is your home until you choose to sell the property.
Renting – NONE – your rent may increase
Owning – YES – with a fixed rate mortgage our principal and interest payment will remain the same for the life of the mortgage.
Renting – NONE
Owning – YES – the value of the property has great potential to increase in time and will benefit you not a landlord.