Renting

 

Benefits
  • Flexibility to move or upgrade at almost any time, depending upon the lease
  • Build up savings; renters are responsible only for paying the monthly payment as stipulated by the contract, paying for utilities (power, gas and electricity) and for limited kinds of maintenance to the property
  • Benefits tenants whose lifestyles do not allow them to purchase a home or whose incomes do not allow them to afford a mortgage loan

 

Considerations
  • Renters do not earn equity in the home
  • No tax incentive associated with renting
  • Annual rent increases can outpace the economy

Use our renting vs owning calculator tool to help illustrate the difference in cost between the two. Keep in mind, this is just an estimate and a Homebridge Mortgage Loan Originator can help you with an accurate payment calculation.

Owning

 

Benefits
  • Sense of stability and security.
  • Tax benefits; owners are able to write off mortgage interest and taxes paid on the home on their income taxes*.
  • Earn equity
  • Create retirement security

 

Considerations
  • Financial investment, including securing the mortgage loan (with the down payment, home inspection and any other associated fees)
  • Property taxes
  • Maintaining the property and making home repairs
  • Potential lack of flexibility to move when the market is not favorable

*Please consult a tax advisor for further information regarding the deductibility of interest and charges.

 

Review Your Finances

    • If choosing to purchase, the purchaser should review all costs associated with the initial investment and have savings or a savings plan in place to help cover unexpected costs.

 

  • If choosing to rent, the renter should make monthly investments in a savings plan. Investing money for the future can make a transition from renter to homeowner smoother.

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