Buying versus Renting a Home
Stop making your landlord rich, put the money into your own pocket and start accumulating wealth.
Renting versus Buying
Advantages of Buying
When you own a home you currently have a great tax deduction. Interest payments are tax deductible. So if you compare renting versus buying, if you rent a home you can not deduct any rent payment from your end of the year taxes. I would say that’s a clear advantage of purchasing a home. You should consult your tax attorney to determine how exactly you can benefit from this and if it applies to you.
When you own your home you are not making your landlord rich you are accumulating wealth. So lets say your monthly rent payment is $2000.- that means you are paying your landlord $24,000.- per year. Now imagine if you purchase a home and your mortgage payment is the same, well you can make mortgage payments and start accumulating wealth. That money will be going toward your mortgage, interest, insurance, taxes but also principal payments. The principal payments will accumulate and start building your wealth.
When you own your home you can do whatever you want. Well as long as they HOA or condo association approve your home improvement tasks. If you are renting you have to live with what the landlord will allow you and then if you are making any changes you are working for free for the owners and are improving their property not yours.
Advantages of Renting
If you know you are not going to be very long in a certain area it might be better for you to rent. Or if you are unfamiliar with a new area and you first want to get to know the new area.
You do not have to worry about any maintenance cost. The landlord is responsible to maintain the home and paying for repairs if something breaks down. Now the landlord can protect themself from high cost and purchase a home warranty.
If you are just starting your home search process, or need advise contact The Claudia S. Nelson Real Estate team with Keller Williams Realty in Woodbridge VA. We can help you with all your Real Estate needs. Whether you are looking to buy your first home or your second or third home we are here to assist. We can help you buy outright or buy and sell at the same time. We have been helping home buyers in and around the Woodbridge VA area for a long time and we would be delighted to assist you as well.If you are looking for your dream home you can find it right here:
Call Claudia S. Nelson
571-446-0002
