Which one is right for you? Here are some things to consider.
- You pay less up front fees. Security deposit and first and last month rent requirement typically is less than one would pay in comparison to down payment for a mortgage
- Landlord handles repairs and certain upkeep of the house
- Relocating is easier.
- Limited ability to customize your living space
- Rent may increase in the future.
- No tax incentives associated with renting
- Renting don't build equity
- Landlord may be unresponsive
- Landlord may decide to sell or decide to stop renting
- You're paying off your landlord's mortgage
- Building equity which may increase your wealth.
- Ability to customize and renovate the home to fit your taste.
- Tax benefits.
- Sense of stability.
- Create retirement security.
- Mortgage payment stay the same each month (fixed rate mortgage)
- Home value typically go up over time.
- Higher upfront financial expense (down payment, closing fees, inspection fees, etc.)
- Property taxes and home insurance costs.
- Maintaining the property and making home repairs yourself
- Having less flexibility of moving when market is not favorable
Note: Angela Carpio is a Realtor serving Menifee, Murrieta, Lake, Elsinore, Temecula, Wichester, Canyon Lake and the surrounding cities.
Angela Carpio, Realtor
Coldwell Banker ABR