Renting vs. Buying a home in 2017

Happy Wednesday! This week we are going over whether renting or buying is the best option for you.
In most cases it is more affordable to buy versus renting a home although, you may be asking yourself how do I know which will be more affordable for me? Hopefully this blog will help you in making that decision.
 
Here is when it makes sense to RENT:
 
1. Uncertain with your current employment
If you are unsure about your current job or if you are barely making it by living paycheck to paycheck. We recommend focusing on conserving cash for a down payment on a home and building an emergency fund.

2. Limited on Funds
If you do not have the funds for a down payment and/or the additional costs that come with owning a home renting will be the best option. Here is a great rent versus buy calculator on Trulia CLICK HERE FOR RENT VS BUY
3. Considering a move to another state
Are you thinking about moving across country or to the next state over within less 5 years? If you are considering a move it makes more sense to rent rather than assume the cost of purchasing a home.
 
Here is when it makes sense to BUY:
 
1. You want to receive the financial benefits
With interest rates still low, this makes home ownership attractive due to the fact that the amount owed by borrowers is decreased on their loans. Depending on how you file taxes you could be able to deduct your mortgage interest and property tax from your taxes every year. Also, the most important part of owning a home is that you will be able to build equity in the home you own; which is not something you can do when renting.
2. Covering the additional cost of home ownership
In addition to having the budget to maintain the property; being able to pay the down payment and closing costs are crucial to purchasing a home. There are plenty of fantastic options for down payment and closing cost assistance although it is usually recommended to have 20% down.
3. Plan to stay in the area for at least 5 years
When buying a personal home you should have the long term mindset. If you have stayed in the home for more than five years the possibility of regaining the equity that you put in for the purchase will be exponentially higher.