Is it better to buy or rent? Today I’ll discuss my views.
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“Should I buy a home or just rent one?” This is a common question in the real estate industry.
First, if you’re renting, the only thing you’ll ever have to show for the money you spend on rent is the receipt. Rental rates also rise over time (sometimes frequently), but never go back down. However, renting is less of a risk to your credit score than buying.
When you buy a home, though, you can start to build wealth. Every time you make a payment on your home, the balance goes down, and your equity on the house goes up. Over time, your home can become a very valuable asset. And at the end of your mortgage, you won’t have to pay any more toward your principal.
If you’re renting, the only thing you’ll ever have to show for your paid rent is the receipt.
Another reason homeownership tends to be superior to renting is that it offers certain tax benefits. All the interest you pay on your mortgage can be written off, which means that at the end of the year, your refund will be much bigger. When you rent, you simply don’t get that benefit.
If you want to start the process of buying a home, I recommend that you first have a conversation with a real estate professional who’s been in the business for a long time and who you can trust. You don’t have to obligate yourself to do anything in particular; just talk to them about the process, and if you like what you hear, you can move forward. If you don’t, you can just walk away.
If you have any other questions about buying a home or real estate in general, don’t hesitate to reach out to me. We’d be glad to help you.