What is better to rent or buy?

In most cases, people think that buying is the best option, but it all depends on the moment and circumstance in which you find yourself. There are solid reasons to explore both alternatives.

Purchase :

Owning a home offers significant tax benefits. Your mortgage interest and real estate taxes can be used as deductions to ease your tax burden every April 15. This is definitely a positive consideration.

• When times in the economy are good and you find a good home in a great neighborhood, you should definitely consider buying. You will build equity as real estate values ​​increase and you will have a powerful asset, especially if your property is in a desirable location.
• Don’t bite off more than you can chew. Make sure your mortgage payment is comfortable. If you have a substantial down payment and job security, go ahead and take the decisive step toward home ownership, especially if interest rates are low.
• There is definitely a psychological benefit to owning a home. It is a motivating goal for many. This investment for you and your family will be a constant source of pride and if you want to paint all the walls fuchsia, well guess what, you can. It’s all yours!

Rent :

If you know that a 20% down payment will eat up all your savings, and mortgage payments and real estate taxes make you nervous every time you think about them, maybe it’s time to rent.

• Remember, if you deplete your savings and your mortgage payment keeps you up at night, what will happen if unexpected repairs or other property expenses come up? There is no landlord to call, you are ultimately responsible.
• Perhaps you are unsure whether your job is guaranteed or that there may be a move in the near future for you or your partner. If your stay in a given community feels fleeting, it’s best to rent until you’re sure to put down some roots. There is no need to rush when your first child is born; Take your time and plan carefully.
• After the 2008 crisis, many homeowners found themselves underwater on their mortgages. More and more people decided it was better to rent, at least until the real estate market recovered somewhat. The rental market has rebounded and is still a popular option in these better economic times.