Buy or Rent? Essential Considerations Before Making a Move in Northern Nevada
Deciding whether to buy or rent can be difficult. Your lifestyle, financial situation, and long-term plans should all factor into your decision. Oftentimes, the amount of money you spend on rent each month ends up being as much as or even more than a monthly mortgage payment. If you decide to rent, your money won’t be an investment in equity. You won’t get it back if you decide to move because you’re not selling your home, and you can’t borrow against it for special purchases or emergency expenses because you are not building equity….it’s just gone!
Buying may be a better choice. Purchasing a home instead of renting gives you numerous advantages, including:
Appreciation
Homes are a long-term investment. Many homes increase in value as the debt attached to them decreases, and many types of improvements can add to the total value. With renting, what you see is what you get, and there’s no return on investment if you leave.
Ownership
By purchasing a home, you invest in an asset over time. An asset you have a stake in. When your loan is paid off, you will own your home and have equity. By renting, you’re simply paying landlords and property management companies for using their assets.
Equity
When you build equity, you will eventually have the option to borrow against it to gain access to funds for improvements or major purchases through certain programs.
Stability
Rent costs can change dramatically, but with a fixed-rate mortgage, your payments will stay the same each and every month throughout the term of your loan.
Deductions
Mortgage interest and property taxes are usually tax deductible. Other aspects like points and applicant and appraisal fees may also be deductible. Consult a tax advisor for further information.