Rent Versus Own a Home?
It’s an age old question. Is it better to RENT, or better to BUY? Let’s do some very simple analysis, and in later posts we’ll learn more about why buying a home makes sense much of the time, while renting a house is likewise a good move from time to time. Check out the photo below…….
Much of the benefit of owning a home comes from courtesy of investing. You’re going to decide that living in a home, in a stable and probably more luxurious place than renting, is worthy of investing in the down payment. (Now if you’re a veteran you don’t need a down payment with a VA Loan). If you’re currently renting, and your rent is $2700 a month, then you can look at the chart and see that after six years you will be even…..paying the same amount to own than if you had rented!
Owning also comes with considerable tax benefits not considered in the above calculations, so check with your CPA or accountant to see how much more you would save on your taxes by owning rather than renting, and then factor that into your decision.
Consider the other opportunities that come with owning a home,qui particularly stability, credit building, potential long-term capital gains, your own neighborhood and much more.
I rented for almost 15 years of my adult life. It was what I did, but I’d have saved hundred of thousands of dollars in that short time had I purchased earlier. You might be the same, and if you are or not you owe it to yourself to check out the financial aspect of home ownership as well as the true benefits that come with your own place.
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