The choice between buying a home and renting is often
dependent on the marketplace in which you live as well as your current
circumstances. Here is a list of factors that will help you determine what is
best for you.
Do you plan on staying very long?
Those who plan on putting down some roots in a location for
a while will fare better to buy, as any upfront fees will be spread out over
many years. But if you’re not ready to commit to an area, think you might need
to move in the near future, are considering a job change, or expect a pay hike
or pay cut, renting may be a better choice.
What is the Economy Like?
The price of homes, rents and stocks can impact the outcome
of when you decide to sell a home. Unfortunately, these are some of the hardest
things to predict. But in general, even in down markets, a home is a good
investment if you plan to stay for a while.
What is the Price of Rent?
What is the price of rent each month versus the cost of
monthly mortgage payments? If you live in a city where making mortgage payments
is less than rent, it is better to buy. Currently
in the St. Louis, MO area it is less expensive to make mortgage payments than
to rent.
2015 STATISTICS: http://www.consumeraffairs.com/articles/which-is-cheaper-buying-or-renting-032315.html
Taxes
You can deduct mortgage interest as well as property taxes
on your home at tax time. The higher your marginal tax rate is, the bigger the
deduction. In addition, if you work from home you may be eligible to take
deductions home office and a portion of utilities. Renters do not get this
privilege.
Maintenance and Decor
If you live in a house, you can decide how to approach
maintenance, either doing it yourself or picking your own contractor. Also you
have creative control. Paint things how you like and hang as many pictures as
you want.
Equity
Renters are paying their landlord’s mortgage and adding
equity to their property. When you buy a
home you increase your degree of ownership with every payment. A general rule
is that if you intend to stay in your property for at least five to seven
years, the costs of purchasing the home are more likely to be offset by accrued
equity and increased housing value. Enough equity in a home can be used as
capital to make major purchases like funding a second home or your child's
education.
Credit Repair
If you have bad credit it can be difficult to obtain a
mortgage loan to purchase a home. However renting and making consistent on-time
payments will help rebuild your credit.
Find a Home to Buy or Lease
We hope this article helps you make an informed decision on
whether renting or buying a home is right for you. Search homes for sale and
for lease in the St. Louis and St. Charles, Missouri areas at our website, www.TheBoehmerTeam.com.
Good tips. I think buying a house is better than renting it. But it still depends on the budget. To share my experience, I think I'd made a good decision back then when I bought my home near Bonifacio High Street.
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