Is buying a home always better than renting one? Not in every case, but in most cases, the answer is yes.
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Is homeownership always the right decision when it comes to the debate of whether to buy or rent? Let’s say that you’re renting a home now and thinking about buying, but you also know that you’ll be leaving the area within a few years. In this particular case, homeownership is probably not the best idea because you won’t build up enough equity to make the investment worth it. Even then, it could still be a good idea if you want home security for your family or to turn the home into a rental property.
If you’re renting a home for $1,800 per month and you rent for three years, that’s $65,000 that you’ve spent on rent. What have you received? A home to live in, but no other financial benefits. No appreciation, no tax deductions.
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The money you spend on your home purchase will go towards much more than your rent.
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The money you spend on your home purchase will go towards much more than your rent.
If you buy a home and the mortgage payment is $1,800 per month, that $65,000 you will spend in three years will not only go towards your rent, but for your interest and taxes as well. You will get a portion of what you’ve spent back at the end of the year, and continue to build up equity in your home over time.
So homeownership isn’t the right decision in every single case, but it is a wise move in most cases. If you have any additional real estate-related questions for me, don’t hesitate to reach out and give me a call or send me an email. I look forward to hearing from you soon.
