RENTING VS. OWNING
When is the right time to buy?
Buying your first home will be one of the biggest financial decisions of your life, but there are so many benefits to owning a home between the money you save, the equity you build, the freedom you have, and the roots you grow.
YOU SHOULD RENT YOU SHOULD BUY
I plan to live in the area for less than 2 years | I plan to live in the area for more than 2 years |
I want to stay flexible | I want to have the freedom to fully customize my home |
I need to build/ repair my credit history | I would like to save money on tax deductions |
I am saving money for a down-payment | I want to start building equity |
WHY it pays to buy
The chart below shows a cost comparison for a renter and a homeowner over a 7 year period
Source: Ginnie Mae
With renting, that is $140,777 down the drain.
Home ownership not only has tax advantages, but as you pay down your mortgage loan and as home prices rise, your equity* increases.
Easy Read Definition*
EQUITY: Put simply, equity is ownership in an asset of value. Ownership is created when the owner contributes to the financing of the asset purchase.
As a loan is paid down, (as long as your property is either a. staying the same in value OR b. increasing in value) you will accrue equity which is also known as an asset in your property. Most banks will allow you to borrow against the equity you have built through paying down your principle.
I specialize in helping First Time Home Buyers get out of the renting cycle, and get started building equity in their home investment. It is never too early to start, and you would be surprised by the amount of inventory and bonuses available for buyers right now.
With that being said - even if you won't be buying for the next couple of years, I want to help you get started building your credit, saving for a down-payment and get you started preparing for the home buying process. These are small things you can do now and over time to make your home buying process much less stressful.
If you will be financing this purchase, it is of the most importance to me that you work with a lender that you feel comfortable with and can trust. I have a list of local, reliable lenders who have moved mountains for my clients in the past. I will be happy to send them your way when you are ready.
I look forward to working with you!
Comments