One of the key questions I am asked as a Realtor by clients who are considering real estate is: "Should I rent or should I buy?" It is very important to look at each situation individually, but in general, renting can be a great option for people who are new to an area because it allows them time to explore the community and determine where they want to live long-term. It is also a great solution for short-term housing needs or if you are expecting an upcoming move or job transfer. Many people also choose to rent while they are saving for a down payment to purchase a home. These are all great reasons to rent versus buy, but the question remains...what happens to all of that rent money? Once the rent is paid, it disappears completely from your life and your bank account. It does not gain interest, or build equity and there is no return on your investment.
"Should I rent or should I buy?" So, what are the benefits of buying a home rather than renting? For starters, the amount of money you pay every month towards rent can be used to pay a home mortgage instead. For example, if your monthly rent payment is $1,000, that would be equivalent to paying for a 30-year mortgage on about $180,000 at 5.5% interest. Buying a home allows you the opportunity to build equity and it can also reduce the amount of Federal and State income taxes you pay each year. Interest rates are still extremely low and if you have money set aside for a down payment, then now is a great time to buy!
"Should I rent or should I buy?" Check out this calculator to help you in your decision making process:
If you are interested in learning more about qualifying for a home loan or if you have questions regarding your particular circumstances, then please don't hesitate to contact Karen Berg at 602.919.2375. Nothing gives me more pleasure than helping people realize their dreams of home ownership, especially Queen Creek and San Tan Valley AZ Homes for Sale!
22713 S Ellsworth Rd Bldg A
Queen Creek, AZ 85142