Renting:
PROS
·
Normally is less expensive in terms of Rent and
Deposits initially.
·
More flexibility – you can move in a short
period of time i.e. 30 day notice
·
Free of Maintenance costs, you can just call
when something breaks and someone else will fixed it.
·
No financial obligation for taxes, insurance,
flood insurance
CONS
·
When you write that check for rent its GONE,
money down the drain you can never get it back.
·
NO control over the rising cost of rent.
·
You can’t be creative and make it your own,
paint, remodel etc.
·
You are at the mercy of your landlord when it
comes to renewing your lease, if they will even allow you to renew.
·
Restrictions like NO pets, No BBQ’s RULES, RULES
and more RULES
Buying:
PROS
·
Buying a home is an investment and should
appreciate over time. This should be considered a long term investment.
·
You can lower your income tax liability both
federal and most states, by deducting mortgage interest paid each year. You can
also deduct your property taxes. This will save you money each year.
·
Your credit rating will go up and banks will be
more likely to lend you money
·
You are free to do most any decorative thing you
want to your home, make it your own, and let your style shine through.
·
Long term security, you won’t have anyone telling
you when to move. You can laid down roots and raise your family, stay as long as
you want.
·
Providing you have a fixed rate mortgage your payment each month will be the same for the complete term of the loan,
in most cases 30 years. This is a BIG plus!
·
You can finally have that big dog you have always
wanted without having to ask permission or pay an extra deposit.
·
You can also plant a garden or trees and make
the yard or your dreams.
There are many freedoms when you own your own home, too many to list. But for most it's a sense of pride and security for your family. Priceless!
CONS
·
Well the cost of course, money-money-money! Down
payment, closing costs etc., etc.
·
Taxes, Insurance, Maintenance
·
BIG dreamer, little budget, most first time
homebuyers probably can’t start off with their dream home but instead start out
small and move up to a bigger and nicer home at some point in the future.
·
Commitment, you will probably not be able to
pick up and move at a moment’s notice.
· The housing market and economy will determined
your gain, it’s not always going to be a windfall. You could get stuck buying
your way out of a home.
·
Worst case scenario is short sale and
foreclosure if you are not able to make your financial obligations
I hope this list of PROS and CONS helps you with your
decision to buy vs. rent. I am a true believer that the dream of homeownership
is alive and well. I see it all the time in those who dare to dream and set
their sights on homeownership. If you too would like to jump in the ring and
learn more about how you can become a homeowner there are many programs
designed around the first time homebuyer. Most counties in the US have programs
to help you, including down payment assistance.
I offer FREE Mortgage Coaching and will be doing classes both online webinars for those in other states and LIVE seminars in my local area during the month of March and April. I welcome you to contact me directly for more information.
Thank you and I encourage you to ask questions and leave
comments.
Certified Mortgage Coach
Branch Manager
NMLS #269926
808-637-0011
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