Why it's Better to Buy vs. Rent -
In todays housing market, the question still comes up - Is it better to Buy vs. Rent? Battling that question yesterday, I gave some quick numbers of what an interest amount might be and told my client to visit with their CPA to learn if it is better to buy vs. rent. Each person's situation can be as individual as a fingerprint. As real estate professionals, we cannot give tax or legal advice. But, we can offer clients an idea and have them discuss it with the pros.
My client did just that. She contacted a CPA and, astoundingly, still couldn't come up with a good reason to buy vs. rent. Searching for other ideas to assist her in this big decision, I gave her these thoughts:
I'm thinking it makes more of a difference than you think to buy vs. rent. Rent is not a consistent number as it could increase and you might not be able to live in the same home as an owner could decide to sell and the buyer wouldn't want a tenant; thereby costing you money to move.
You earn equity in the home, the longer you own it.
Your improvements are added to the basis of the home so that if you sell in the future, you could entirely avoid capital gains taxes.
There is no tax deduction for renting.
You are paying off someone else's debt.
You never stop paying rent.
Interest rates will never be as low as they are now going forward into the future, making purchasing a home even more difficult.
It's nice to know that at some point, a home can be paid for and you get to live rent free. That, to me, is a great thing!
And the most significant - it's yours!
So when you're thinking do I want to buy vs. rent, consider these areas for your specific scenario. And if you're looking to buy or sell a home, contact me for great service!
Comments(4)