Most of my clients, often ask me what will be better, to rent or to buy a house? The answer is not too easy. Buying and renting it’s not comparing apples to apples. There are a lot of factors that need to be taking in consideration. Let’s analyze the two options.
RENTING A HOUSE:
When you rent, your family is living in a rented house on a temporary basis. Renters should keep in mind that they cannot control their housing destiny. Often when you rent you do not get to pick the location of the house, nor the size or the quality of their home. If the property-owner decides to sell the house, renters will be looking for a new home. The landlord can also increase the rent at the end of the lease/rental agreement, which it will make a dent on your financials. Also take in consideration the fact that you are throwing your money away, every month. Rent is a good solution for clients that are in the process of working on their credit or they are barely starting on their credit. Rent should be consider as a temporally solution to your housing needs.
BUYING A HOUSE:
Owning a home can and will give you a sense of security that you cannot find in a rental unit. Home owners can tailor their home to their individual needs, as opposed to rental units, where their options are more limited. Home owners have the sense of permanence and the feeling of being part of a community when they own a home. Interest on a home mortgages is a tax deductible, as well as your home taxes. Another benefit is that owning a house give’s you the ability to do with it what you want (subject to neighborhood rules, of course). Aside from the tax benefits and the feeling of security; buying a house is everyone’s biggest investment. Home buying it’s a great investment in good times because it is usually leveraged to a great degree.
In conclusion, renting or buying a house it totally depends on every single client, and everybody is not the same. So, consult with your mortgage banker, explore your options, and check if you are eligible for any Down Payment Assistance, this assistance can help you minimize the cost of purchasing your home. Make sure you ask as many questions as you may have. For a free consultation and/or credit analysis, feel free to contact me.’