Monday, July 19, 2021

Renting vs. Owning Your Home


 Which one is right for you? Here are some things to consider. 


Renting


Benefits

  • 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.


Considerations

  • 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


Owning


Benefits

  • 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. 


Considerations

  • 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

In the end, only you know what is best for you and your family. Weigh in the pros and cons and reach out to a loan officer or your accountant to go over the numbers. That way you can make an informed decision. This is the one of the biggest, if not the biggest investment you will ever make in your life and it is important that you understand everything before deciding whether to continue renting or if it's time to purchase your home. 


Note: Angela Carpio is a Realtor serving Menifee, Murrieta, Lake, Elsinore, Temecula, Wichester, Canyon Lake and the surrounding cities. 


Angela Carpio, Realtor

619-228-5034

Coldwell Banker ABR

Lic. #01967762

AngelaCarpioRealtor@gmail.com

http://www.angelacarpiorealtor.com/

#angelacarpiorealtor



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Renting vs. Owning Your Home

 Which one is right for you? Here are some things to consider.  Renting Benefits You pay less up front fees. Security deposit and first and ...