The Benefits of Buying vs Renting

Are you weighing the options of renting versus buying? People are often intimidated when it comes to buying a home. In reality, buying a home can be less expensive on a monthly basis and you will end up building long term equity. Let's take a closer look at the difference. Some advantages of home ownership include: equity building, tax perks, and freedom.

Equity Building

Equity is the difference between your homes value and how much you owe your mortgage lender. Between paying down the mortgage balance and appreciation a house gains equity over a period of time. Equity building is one area that a lot of people do not understand. Rental payments are payments that do not contribute to your overall wealth, but mortgage payments do. Each payment you make increases your share of your home's value. Equity starts to build when doing so.

Tax Perks

Mortgage interest is the biggest tax perk for owning a home. There are not tax advantages when renting. Home ownership allows for mortgage interest and property taxes to be deductible from federal income taxes. Tax savings can make owning cheaper than renting.

Freedom

Renting is different than home ownerships because it comes with restrictions. Most landlords restrict there tenants from doing certain things. Home ownerships allows for the owner to personalize the home. This will allow you to give the home your personal touch.

If you are debating about renting or buying or if you know someone that is, please feel free to reach out to me. I would be happy to answer any questions you might have!

Sincerely,

Elaina Musleh

Bif Ward Real Estate Group

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Direct Office: (317)580-7806

Direct Cell: (317) 650-5898

ermusleh@gmail.com