The decision to buy or rent depends on many factors: your current finances, your future plans and the lifestyle you want to live. Like many other major life decisions, there are pros and cons to consider on both sides.
For instance, if you currently rent or are leaning that way, you have to be wary of rent increases. Landlords never stop by to say, “Hey, by the way, I am lowering your rent.” In fact, trends show that over the past few years, rental prices have risen consistently and dramatically in many markets, so you can pretty much count on your rent payment getting bigger over time. Now, if you’re thinking about buying a home, consider that there will be property taxes to pay and, oh yes, you should probably invest in a lawnmower . . . because maintenance will become your responsibility.
However, it’s not all bad! Renting and owning both have their upsides as well. Here are some important considerations that we think will help you make a more informed decision as you weigh the two options:
Buying a Home
- Your home builds equity
- You can tap into the equity via loans
- Homeowners can qualify for tax breaks
- Housing payments can stay fixed
- Freedom to decorate as you please
- First-time home buyer assistance programs are available
- Responsible for maintenance
- You must pay property taxes
- Requires down payment
- Homeowners’ insurance may be more expensive than renter’s insurance
- Maintenance is handled for you
- Relocating is easier
- Taxes and insurance can be less expensive
- Your monthly rent payment can increase
- You’re not building equity
- You don’t receive mortgage interest tax benefits
- Need owner’s approval to paint or remodel
Home Buyer Program
It’s a big decision—renting vs. buying—but armed with the right information, it can be an easier one to make.
If home ownership is in your future, here’s another valuable tip to keep in mind: Day Air Credit Union has the experts who can help you think through the decision. If you’d like help evaluating if renting or owning is better for you, talk to a Day Air Home Loan Specialist today!