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



Comments

Post a Comment

Popular posts from this blog

Reasons to Purchase A New Construction Home

-
Image
Reasons to Purchase A New Construction Home If you've spent some time checking out the real estate market but can't find a previously-loved home that suits your style and needs, you might be better off purchasing a newly constructed home. Here are reasons to purchase a new construction home.  1. Better Floor Plans And Room Layout That Meets Your Needs New construction home allows you to choose a modern design and layout that fits your style. From flooring to countertops to cabinet finishes, your home will be tailored according to your preference. 2. All New, Under Warranty A new construction home and everything in it, often comes with warranty. Every builders offers their unique warranty on their homes to coverage workmanship and house materials confident that the quality of their design, construction and appliance installation is up to standard. This warranty gives you peace of mind during your home buying process.  3. Energy and Cost Savings With the integration of adva...
Read more

5 Questions To Ask Yourself Before Buying A Home

-
Image
5 Questions To Ask Yourself Before Buying A Home 1. What is my credit score? The impact of credit score on interest rates can be significant. The higher your credit score, the better your interest rate. The lower your interest rate, the more you can afford. 2. Can I afford the monthly mortgage payment and still be able to afford my current lifestyle? Stay at a monthly payment that you would be comfortable making every month and would still allow you to live the lifestyle you are accustomed to. Life happens and when it does, you want to still be able to afford your mortgage so as not to lose your home. Say NO to being house poor!!! 3.What other debts do I have? Be realistic about what you can afford. You have to take into account ALL of your credit obligations including your estimated monthly mortgage to figure out whether you're ready to buy a house. You don't want to own a home and eat ramen everyday trying to make ends meet.  4. What are the other cost of home ownership and c...
Read more

Tips When Looking At Homes (From A Realtor)

-
Image
   As a home buyer, you are going to be excited and anxious and overwhelmed among other things. You will have all the feelings, I guarantee it. It is an agent's job to make things a little bit easier for you. Here are tips I give my clients when touring homes to make it less stressful for them.    Look At Maximum of 5 Homes At a Time From the list your agent sent you, pick your top 5 and stick to it. After the third showing, you will get so overwhelmed that you most likely will forget what the previous homes look like. You will probably won't remember the things that you like about them nor the things you do not like. You do not want to waste your time looking at homes just so you can say you saw them all. Focus on the ones that fit your wants and need. This allows you to save your time (and gas and money) on the weekend and be able to still spend some valuable time with your family and friends. This would also help you not hate the home buying process.    ...
Read more