With the current economy, it may seem like a better idea to rent a North Brunswick condo in New Jersey instead of buying one. Let's explore some of the reasons why it's still better to buy rather than rent.
Throwing Money Away
When you rent that's basically what you're doing. You give your money away in exchange for a ‘perishable' item-one month of living space. Once that month is over, the money is gone and you didn't get anything of long term value in return.
When you buy a North Brunswick condo you still spend money for a month of living space, but in addition, you're building long term equity. It may take longer and property may not increase in value as quickly as it did in the past, at least for now, but the money you spend becomes a back end asset instead of just disappearing.
When you buy a home, you can deduct the interest and property taxes that you pay every year on your income taxes. That can be a sizeable amount of money. If you buy your first home in 2009, you get an even bigger tax break of $8,000 as a result of President Obama's stimulus plan.
Yes, you actually end up saving money in the long run if you buy a home rather than rent. According to The New York Times, over a 16-year period you can save as much as $5,000.00 by owning your own home. And, that number doesn't include the $8,000 tax credit first-time home buyers get when they purchase a principle residence in 2009.
The bottom line is that the housing market troubles have nothing to do with the ‘evils' of homeownership. They have to do with bad lending practices, and people wanting more than they can afford.
Choose your North Brunswick condo wisely, only buy what you can afford to pay for each month, and pay attention to the loan you are being offered.