If you’re on the fence about whether buying a home is right for you, there are many factors to consider including how long you plan to stay in your house and the market conditions. There are advantages to both renting and buying so the Realtors of Coldwell Banker Preferred have shared their expertise to help you weigh out the pros and cons.
Beginning with a cost analysis, Mary Beth Oates of Coldwell Banker Preferred in Haddonfield, NJ consults clients on the benefits of owning and renting.
"We run the numbers over a five-year period and it’s dependent upon the area and some other factors but most times you will find that due to the low interest rates and home prices, it is more beneficial and cost effective to purchase a home," said Oates.
"Clients can build equity in the home by paying down their mortgage and also reap the benefits of home appreciation,” Oates added.
Tax deductions of property taxes and mortgage interest are big advantages to ownership, according to Kimberly Morehart, a Coldwell Banker Preferred Realtor in Wilmington, Del. She agreed that building equity is an asset to home ownership.
"When you purchase a home, you now can start to build equity, gain financial security, and have a sense of financial stability because your payments are mostly the same year after year. And, you no longer have to be concerned about an increase in rent," Morehart said.
With the current market conditions, she recommends renters look into purchasing a home now.
"With interest rates continuing at a record low, it is the best time for someone who is renting to purchase. In many cases, their mortgage payment will be lower than the current amount they pay for rent," said Morehart.
Besides the financial benefits, if you own your home you don’t have to worry about a landlord restricting your ability to make your space your own by painting and adding structural elements.
"There is also a sense of community and belonging to a neighborhood that isn't typical in a rental situation," Morehart said.
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