Monetary Issues:

Non-Monetary Issues:

• Little or no maintenance costs;
• No down payment. Do need security deposits and possibly first and last months rent;
• Moving expenses in and out;
• Can't lose money from falling home values;
• No property tax;
• Rent can rise with inflation;
• Usually you get less space for the money.
• No tax breaks, your landlord gets any and all tax breaks available.

Owning:

• Ongoing repair and maintenance responsibility;
• Down payment required, but for some, can be little or no money;
• Can gain value and be available as a loan resource (equity loan);
• Equity may go up, down or stay stagnant;
• Moving expenses in and out;
• On-time payments create good credit record. Late payments can harm credit score;
• Over time, your mortgage balance decreases and equity builds, even if the value of the home does not increase;
• Property taxes, insurance, etc.
• There are tax advantages to owning a home (consult competent legal and/or accounting advice for details on your situation).

Renting:

• When the lease is up you can easily move out;
• Flexibility;
• Less work in maintaining a home or apartment;
• Able to check out the neighborhood before making a permanent commitment to live there;
• Less stressful than choosing a home;
• Typically there are restrictions on noise, use, design, pets, children, etc.

Owning:

• Moving typically requires more thought and time;
• Definitely more responsibilities;
• Requires the choice of neighborhood and home;
• The ability to remodel or redecorate the home to match your needs and desires;
• No restrictions on who occupies the home or how to use it (apart from Home Owner Associations);
• Pride of ownership.

Should you sign another lease or should you jump in and buy your first home? So many ask themselves, "should we rent or buy?" There is no right or wrong answer to buying or renting, the best decision is what is best for you. What is most important is that you do your homework. Put into consideration your situation financially, your commitment, weigh out the costs, responsibilities of homeownership. Start the process of getting pre-qualifed and getting yourself organized. Understanding the process of buying the best home.

Despite the risks and responsibilities, most people enjoy homeownership. There are many rewards as mentioned above. Purchasing a home is generally a sound investment. As you are paying down your home loan, you are building equity. Not like most purchases, a home purchase can increase in value over time.

There is no question that people that own a home are typically better off long term than those that are renting. There are many ways to make home ownership a reachable goal.

When you are ready to buy and looking in the Phoenix metropolitain area, hire a REALTOR® like myself, who wants to earn your business. I invite you to contact me direct to assist you with all your real estate needs or questions! I will happily guide you through the biggest decision of your lifetime, don't hesitate to contact me at 480-202-3558 or email me at CRobinson@HSmove.com. If you need additional guidance on all the preliminary steps in purchasing a home such as getting pre-qualified be sure to contact me and I can help you every step of the way.

Watch for the next series: How Much Home Can You Afford?

Series 1:Before Your Search Begins - Basics of Home Buying