Renting vs Buying – Are you still sitting on the fence?
Posted by 
Al Filippone Associates on Tuesday, July 21, 2009
The Darien housing market has been gaining momentum over the past few months as consumer confidence has started to improve. While real estate sales are picking up, the housing market doom and gloom of the first quarter has many renters still sitting on the fence. The decision to purchase a home is definitely not one to take lightly and it is extremely important to conduct a thorough analysis of your income, savings, monthly expenses and long term plans before taking the plunge.
The reason many renters are reluctant to buy is because they assume renting is an inexpensive alternative. A key fact that renters fail to notice is that they often spend the same on rent as buyers do on mortgage payments. In addition, the equity gained upon sale in the long term makes the decision to buy an obvious choice. Here are just a few reasons why in the long term buying makes more financial sense than renting:
Buying:
- Builds equity
- Become part of the community
- Ability to upgrade and customize home to your taste
- Tax benefits of mortgage interest and property tax
Renting:
- Zero equity
- Cannot control rent increases
- Zero tax benefits
- Potential for landlord to sell/evict
How much do I have to earn?
Not sure how much money you’ll have to earn to afford your house payment and accompanying expenses?
How much can I borrow?
Want to know how big of a mortgage you can take on?
How much will my tax deduction be?
Want to know how much your home mortgage will save you in taxes?
