Rent vs. Buy – Which is Better for You?

Decide whether renting or buying a property is best for you.

 

In today’s landscape of rising home prices and interest rates, it can be difficult to get started on the property ladder. There are several factors you will need to consider when deciding if it’s better to rent or buy. To help, we’ve rounded up some essentials that you should know.

 

Buying

 

Advantages:

  • You will eliminate monthly housing payments once it’s paid off.
  • If the home appreciates more than you’ve paid in mortgage, interest, taxes, and maintenance over time, you earned a return
  • Interest paid is a tax deduction
  • Home value may increase over time
  • Build equity as time goes by is like a savings account
  • You can make renovations to customize it to your style

 

Disadvantages:

  • You’re responsible for all repairs
  • Requires a sizable downpayment
  • Large up-front costs needed
  • More difficult to qualify for
  • Property taxes, mortgage insurance, homeowners insurance

 

Renting

 

Advantages:

  • Repairs are included
  • Easy to relocate
  • No HOA dues
  • Low move-in costs
  • Not tied to a specific area/property

 

Disadvantages:

  • You cannot make changes to the property
  • You earn no return on your payments
  • Monthly rates could increase
  • Renting does not improve your credit

 

Whatever you decide to do, ensure you have the right homeowners insurance or renters insurance in place.  Visit the professionals at McCarty Insurance get started today! We can help you understand the ins and outs of your chosen policy.

Leave A Comment

Our approach is unique. See how we can help you!  Contact Us