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Buying versus Renting

By
Real Estate Broker/Owner with ERA Simmons Real Estate 18157

Now that the tax credit is almost over, many who are still sitting on the fence about homeownership are asking about the benefits of owning a home over renting.  While paying mortgage payments and property taxes may seem like an expensive and stressful proposition over the near worry-free lifestyle of renting, these expenses actually provide great financial benefit for homeowners, even without the tax credit incentive.

When you rent, every dollar you pay is retained by the landlord.                                          

However, when you purchase a home, a portion of each monthly mortgage payment is used to pay down the principal amount of the loan and in return increases your equity in the property. In addition, you can offset much of the cost of property taxes and mortgage interest through allowable tax deductions.

Finally, by owning a home you may also increase your equity if the property appreciates in value.

For specific information on the financial and tax benefits of buying compared to renting, contact your local financial or tax consultant.

Tamra Lee Ulmer
Arizona Resource Realty - Payson, AZ
NRBA ~FORCE~ Over 1000 REO Assets SOLD!

Great presentation of the incentives of buying a home rather than settling for just renting!

Apr 20, 2010 10:26 AM
Ryan Smith
Keller Williams Energy Real Estate Brokerage - Pickering, ON

I always tell people " If you rent for 20 years, at the end of it you have saved none of that. If you owned for 20 years, and even if your 200,000 home completely crashes and its only worth a fraction of the original price, ( lets say 10%) You STILL walk away with 20,000 in your pocket vs the 0 you have from renting.

Apr 20, 2010 10:33 AM
Lebron Little
ERA Simmons Real Estate - Alamogordo, NM
GRI, ABR, e-PRO

Great analogy, Ryan.  It just makes sense.

Apr 20, 2010 11:11 AM