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Should You Elect to Buy or Rent Your Next Home?

Should You Elect to Buy or Rent Your Next Home?

Well, it’s Election Day. And, you’ve got two perfectly viable options in front of you. One may be a big change from what you’re used to. The other may be a bit more comfortable, but you may have concerns about its long-term effects. Of course, we’re talking about your pending decision to buy or rent a home. What other decision did you think we were talking about today?!

Jokes aside, choosing between buying and renting a home can be much like making the choice between two political candidates. When it boils down, both have striking similarities and a few vast differences. Ultimately, you’ve got to select the one that best represents your lifestyle right now and for the foreseeable future. Yes, maybe even longer than the next four years!

To help you weigh the pros and cons of both buying and renting a home, we’ve created a little comparison of the two. Get ready to cast your ballot toward buying or renting today!

Why Buying a Home May Win Your Vote

When you buy a home, you not only get to hold that nifty “homeowner” title, but you’ve got the pride that goes along with it. In addition, you also get to immediately start building equity in your new home, which can make for a nice payout in the future. Homeowners also have an extra annual tax deduction, thanks to the mortgage interest and property taxes they pay throughout the year.

Why Buying a Home May Lose Your Vote

If you’re the noncommittal type, the often 30-year mortgage that accompanies a home purchase may be enough to make your cast your ballot toward renting. Buying a home also requires maintaining it, which renters avoid thanks to their landlords. Another reason it may be difficult for some people to get on board with buying a home is that the purchase often requires a down payment of at least 3-5% of the home’s purchase price and that does not even take into consideration the other fees associated with the real estate closing process.

Why Renting a Home May Win Your Vote

In some areas, renting a home may be cheaper than buying a home, even though all rent paid goes directly to a landlord and is not deposited back into a home’s equity. Obviously signing a one-year rental lease is great for those who may fear long-term commitment. Plus, renting does not require home maintenance. If the property is in need of a repair, the landlord is typically responsible for resolving any issues. Renters usually are not required to make large down payments when signing a lease, either. Instead, they may have to pay a security deposit equal to a month’s rent.

Why Renting a Home May Lose Your Vote

With a 30-year fixed rate mortgage, monthly payments are sure to stay the same. After a renter’s year-long lease has ended, their rent is subject to increase for no particular reason at all. Again, at the end of the lease, renters have nothing to call “their own” as they’ve simply been making monthly payments to a landlord, who still owns the home. Finally, renters get no breaks when it comes to tax season. In fact, those tax breaks actually go to their landlord, who owns the home.

Now that you know a bit more about both buying and renting a home, you will be able to make an informed choice whenever your own personal Election Day arrives. Whether buying or renting a home gets your vote, be sure to enlist the help of a professional real estate campaign manager! Contact a trusted Berkshire Hathaway HomeServices The Preferred Realty real estate agent to lead your home search campaign today. Now, get out there and cast your vote!