Should I Rent A Home or Should I Buy A Home?

By
Real Estate Agent with Better Homes and Gardens Rand Realty

The decision to rent vs. buy is a very personal one. There are many sound reasons to purchase a home: Re-List For Free Guarantee. Make Your Move. We are so convinced that purchasing a home is a sound investment that we will guarantee if. If your home loses value by the time you're ready to sell, we will relist it for free.equity build-up, tax savings, capital gain when you sell, and the enjoyment of ownership. The purchase of a home requires a cash investment and taking on debt. Naturally you must have saved enough cash, be able to make future payments, and also have enough time and resources to maintain your home.

The cash investment is applied toward your down payment, closing costs, and prepaid items. Some of these items are not easily recouped if you should sell the home you buy in the short term. Buyers need to consider how long they will own the property before selling. If you intend to occupy the property for a short period of time, then the financial benefits of owning the property are diluted.

In financially analyzing the rent vs. buy decision, you should compare your current rent, future increases, and the renters insurance that you are now paying to the monthly house payment, future appreciation, maintenance and capital gain when you sell. The house payment normally includes your principal repayment of the mortgage, the interest owed on the mortgage, the property taxes, and property insurance. (This is called your PITI, which stands for principal, interest, taxes and insurance.) With time, your property should appreciate or increase in value.*

The rent you pay a landlord is never recouped and none of the rent is tax deductible. When you buy a home, the yearly property taxes, interest, and some of the closing costs are tax deductible.

Rand Mortgage RandVantage

For assistance with any of your real estate needs, please contact me by email, phone or visit me at my office, whether it's to get started on helping you realize your goals and dreams, or just to ask a question - no pressure, no hassle, no obligation - just a friendly conversation. I would welcome the opportunity to make a difference for you.
 
Anthony Stokes Pereira

Phone: (845) 770-2188

Cell: (845) 538-07021
Fax: (845) 624-7134
www.anthonystokespereira.com
 

 
 

This is intended to be informational only. Please be advised that real estate practices vary from state to state and market to market. The information contained herein does not constitute legal advice.

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Rainer
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Paul Gapski
Berkshire Hathaway / Prudential Ca Realty - El Cajon, CA
619-504-8999,#1 Resource SD Relo

very good informative post. I willl have to consider all options in the rent vs own evaluation. Keep them coming.

Mar 19, 2011 03:32 PM #1
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Rainmaker
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Anthony Stokes-Pereira

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