Should I Rent Or Buy?
Wheather to rent or to buy a home is a major life decision. It doesn't just affect how much money you have left at the end of the month; it also affects your lifestyle and the size of your savings you accumulate over the years. So, before you consider buying or renting a home, its important to remember how such a purchase will affect your finances as well as your lifestyle.Benifits of Renting:
Benifits of Buying:
- "Test driving" a neighborhood or building before you make a longer-term commitment to homeownership is a great way to learn about your surroundings and test commute times.
- All-inclusive pricing
- In some instances, the landlord will pay for utilities. Of course, you'll probably pay more for these units, but it will save you the time of paying each bill individually. This also help with budgeting because you know exactly what amount you need to pay each month.
- You increase your degree of ownership in your home with every payment you make; when you rent, you're paying your landlords mortgage or adding equity to their bank account.
- Tax deductions
- Property taxes and mortgage intrest costs can add up, but they're also deductible. Not only that, but if you meet certain requirements the IRS won't apply a "capital gains" tax on profits from the sale of your home.