Rent versus Mortgage...Which is Right For You?

   As a Realtor, I hear it everyday! Why should I pay THIS much rent?! It would be cheaper to buy something! While it is very true that rental costs have skyrocketed, especially here in the Central Kentucky area, buying may not be the best course of action for everyone. Let's take a look at the unbiased pros and cons of both renting AND owning your own home. Then, you can make an educated decision for you and your situation!

Buying Versus Renting

• Buying a Home:

• Pros: 


• Huge tax deductions for property taxes & loan interest paid.
• Money savings plan through equity built in property.
• Houses are valuable investments.
• Establishing roots in a community.
• Potential rental income.
• Creative control.
• Pets? No pets? That's your call!
• Control of monthly costs...mortgage payment is set (in most cases)

• Cons:

• Large upfront costs.
• Responsible for all maintenance and repairs--plan for it!
• Responsible for mortgage--all 30 years of it!
• Potential for financial loss if housing markets takes a bad turn.
• Less flexibility in relocation. It takes longer to sell a home and move.




• Renting a Home:

• Pros:

• Minimal upfront costs. Usually just a security deposit.
• Little, if any, maintenance or repair responsibility.
• More flexibility for relocation if needed or desired.
• Less financial risk.

• Cons:

• Rent is not tax-deductible.
• Your rent does not accrue equity.
• Restrictions--decor and pet choices.
• No control of rent--landlord can raise rent.

 

So, as you can see it truly depends on your long term goals and objectives! This isn't a one size fits all kind of solution.   I hope this has been informative and helpful. When you're ready to discuss your home ownership goals, please keep me in mind! I'd love to be at your service! Have a fantastic day!

Until next time,
Melissa Hall, Realtor