Buying Versus Renting
Which is better? Buying or renting. There are general guidelines. However, each person’s situation will vary and the choice to purchase a home over buying is a personal choice.
There are three general conditions when, all things are equal, renting is better than buying:
- Your rent is below average and you expect it to stay like that.
- You do not plan on being in the same location within a few years.
- The housing market is extremely expensive.
- The cash that you would invest is yielding better than average terms.
The New York Times reports that buying is better than renting after five years. Consider your five year plan. Home ownership provides security, tax advantage, potential appreciation, sense of community and neighborhood.
It isn’t just a matter of purchasing a home. The home should be in a great location, bought right and fully inspected, to ensure no surprises.
Pros and Cons of Buying Versus Renting
- With the purchase of a home you potentially building equity.
- Purchasing means tax deduction.
- Emotional satisfaction.
- Renting a home provides you the flexibility to easily relocate.
- Renting allows you the ability to invest in other areas.
- There’s no upkeep with rentals.
We are available to discuss your personal situation and determined whether purchasing or renting is the best option.