Owning vs Renting: Why High Rents Are Worse Than a Mortgage over the Long Term

If you are at the stage in life where home ownership is within your reach, you are probably wondering whether you should start looking for a home or whether you should keep renting. Renting is easier, people say, and it gives you more mobility however over the long term, all rent money can really add up and eventually reaches a point where buying makes more financial sense.
Renting Doesn’t Generate Equity

One of the single biggest sources of wealth in the United States is home equity. As you pay down your mortgage you invest more and more of your money into your property, and it appreciates in value. When you sell the home you make a profit.

Renting Doesn’t Give You Access To Homeowner Tax Credits And Deductions

There are several tax benefits available to homeowners that renters simply cannot access. As a homeowner you can deduct mortgage interest from your taxes thereby reducing your taxable income however there’s no such deduction for renters. You can also deduct property taxes and some closing costs when you purchase a home – there are no corresponding tax benefits for renters.

One of the biggest hurdles keeping people out of the real estate market is the down payment.

Visit my National Homebuyers Fund page and gain access of up to 5% of the purchase price and provided you qualify, this is money that does not have to be paid back!

Renting may be a good short-term solution, but over the long haul, owning is almost always better. Call a local mortgage professional to learn more.

Click here for a link to my secure loan application or contact me direct at 303.668.3350!

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