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a single family home next to a 4 story apt building

Owning or Renting: Choosing Your Home Base

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Deciding to rent or buy a home is a big choice! Both options have their pros and cons, and the best pick depends on your lifestyle and goals. Let’s explore the benefits of owning a home and when it might be a better choice than renting.

A 23 year old couple speaks with a realtor outside of a house

Homeownership Perks:

  • Building equity: Each month’s mortgage payment goes towards owning a piece of property, unlike rent which disappears. Over time, your home’s value could increase, adding to your net worth.
  • Stability and control: You’re the boss of your own space! No more worrying about rent increases or landlord rules. You can paint, renovate, and personalize your home as you please.
  • Potential tax benefits: Homeownership might offer tax deductions for mortgage interest and property taxes, consult a tax professional to see if you qualify.
  • Sense of pride and community: Owning a home can foster a sense of belonging and stability, and contribute to a feeling of community involvement.

But hold on! Renting has its advantages too:

  • Flexibility: Renting offers flexibility to move easily if your job, family, or life plans change.
  • Lower upfront costs: No down payment or closing costs, just monthly rent and utilities.
  • Maintenance-free living: Landlords typically handle repairs and maintenance, saving you time and money.
  • Less financial risk: No worrying about property values or market fluctuations.
a single family home next to a 4 story apt building

So, when is buying a good idea?

  • You plan to stay put for a while: Buying makes sense if you see yourself living in the area for at least 5-7 years, as selling before can result in transaction costs outweighing any appreciation.
  • You have a stable income and good credit: Owning requires consistent mortgage payments and responsible financial management.
  • You’re comfortable with maintenance and repairs: Be prepared to handle unexpected issues that come with owning a home.
  • Down payment saved: Aim for 20% down payment to avoid private mortgage insurance and reduce your monthly costs.

Remember: Before taking the plunge, research your local housing market, consider your financial situation, and consult a financial advisor or realtor for personalized guidance.

A 23 year old couple speaks with a realtor outside of a house

Additional Resources:

Choosing your home base is a big decision. By carefully weighing the pros and cons of owning vs. renting and knowing your personal circumstances, you can make the best choice for your future!

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