That is the question of the day!
We all must live somewhere so the golden question becomes - what is best for you and or your family?
There are benefits to both renting and owning. You have to ask yourself, where you want to be in five years or 10 years? Are you looking to start a family? What happens if you get a job change and you have to relocate?
Other important questions to consider are: Can you afford to buy? Do you have enough money for a down payment? How is your credit? Will you be able to keep up with the payments? What happens if you get married? Have a child? What if mom comes to live with me?
If you chose to rent, questions to consider include: Does it come with utilities? Should you have to buy renter’s insurance? Will you be required to? Are there limitations from making excessive noise such as walking too heavy which can upset the tenants downstairs or will you have to prevent the dog from barking and your child from crying or playing too loud?
There is a lot to ask yourself if you want to be the ideal tenant. Renters have a commitment only until the end of the contract - then what? You sign a new lease or move on. You cannot take any deduction for renting, so it is pretty much lost money.
On the other hand, there is home ownership. Ownership has benefits - like pride. Owning your own home is considered to be one of the highest achievements in life and it is like owning your own little piece of heaven. Plus, it has other benefits such as, taking the mortgage deduction when you file your taxes.
For the first five or so years, most of your payments go towards interest and at the end of the year, you have a huge tax benefit.
You can also deduct a lot of home improvements that you will do to your new home. You can turn up your stereo (within town limitations, of course) and just do as you please in your new home. Don't you feel a sense of accomplishment that comes with owning a piece of the American Dream? Wow!
You should certainly consult your tax accountant for exact details to assure your maximized deductions. There are certain limits on how much mortgage interest homeowners can deduct, capping it on mortgage debt of up to $1,000,000.
So, there are lots of benefits from home ownership. Contact your local Real Estate Broker to determine if buying is right for you.
Richie Vraux is a local Real Estate Broker/ Realtor® with RE/MAX Allied here in Windham. He lives in Raymond with his lovely wife, Kathleen and two boys, Wesley and Justin.