Rent vs. Buy

Ownership gives you a special feeling…and a whole lot more.

The freedom of owning your own home is a benefit in itself.  Renters have many restrictions that owners do not experience.  For example, as an owner you can hammer a nail wherever you want, change a flooring or the fixtures, add on or tear down – all without hassles.

Be your own Landlord.

When you pay rent, the money just disappears.  When you purchase a home, you are acquiring something tangible while building equity.

The longer you own your own home, the greater the equity – and while rent goes up every year, your mortgage payment can remain fixed.

THE BENEFITS OF OWNING PROPERTY

Savings at tax time:  For many, the purchase of a condominium is proving to be good tax sense.  You can derive tax benefits whether you reside at your property or not.

Beat inflation:  A home helps you keep up with inflation.  Although not all homes appreciate at the same rate and some years are better than others, real estate has historically kept pace with, and usually appreciates faster than, the rate of inflation.

Build toward a secure retirement:  Tax laws presently give most married homeowners an exemption of up to $500,000 from capital gains tax on the profit they realize on the sale of a home they’ve lived in for two of the last five years.  Unmarried homeowners can take a tax-free profit of up to $250,000.

Homeowners are a recognized force in the community

Homeowners are unique.  When you live in a neighborhood or building that is owner-occupied, you and your fellow homeowners are more likely to make sure high standards are maintained by investing time, money and effort to increase property value and improve the community.

As an owner, you get importint income tax advantages

Your best interest:  All interest paid on a mortgage is deductible for income tax purposes.  And in the early years of a mortgage, most of our payments are interest.  Remember, too, that property taxes are often deductible and that other special tax deductions such as Energy Credits are also available to homeowners.

How to look at mortgage interest rates:  Don’t be fooled.  You pay much less in interest than the mortgage rate of your loan, because the interest you pay becomes tax deductible.

improvements you make on your home pay you back

A renter who makes property improvements does not benefit financially from those improvements at move-out time.  However, homeowners can gain back some or all of the cost of the improvements they have made when selling their home.

How you can build “trade up” value:  Even if your first home isn’t your “dream home”, you are working your way up to it!  With possible appreciation and some home improvements, it may provide you with enough equity to make a down payment on the home of your dreams.

how much rent do you really pay?

                                    …assuming a rent increase of only 5% annually.

compare the advantages.  Should You Rent or Own?