In today’s real estate market is renting better than buying? Rents are high, but it still maybe cheaper to rent than to buy, so why buy?

And there are times when renting can be a better option than buying a house.
For example, if you are relocating to a new area, and you do not have to find a house to buy, you may want to rent until you know the area before you commit to buying a house.

But in my option, renting should be a short-term plan, other than that buying a house is often a better choice.

Here are a few reasons why.

When you buy a house, and you take out a mortgage, every payment you make a personage of the mortgage go to paying off the house over the coming year.
Paying rent never stops.

Every year you can write off the interest paid on your mortgage off your taxes,

There are no write-offs for paying rent.

If you take out a fixed rate mortgage, the payments over the years, will remain relatively unchanged over the term of your loan.

When you rent, your rent can increase year after year depending on your landlord, although the benefit is that you don’t have to pay for upkeep.

For most people, their home is one of their largest financial investments and makes up a big portion of their overall net worth.

So, depending on whether you finance a house for 15 or 30 years, at the end of your 15 or 30 years mortgage, you will own your home free and clear, and even if it has not increased in value over time you own the house,  you will only be paying taxes, insurance and upkeep.

If you decide to sell your home, you stand to earn a profit that you could then roll into another home.

As a renter, you don’t build equity over the long term and if you leave, you don’t get to take any profits with you.

When you buy your own home and you can make it your own, that can be very rewarding.

The money you spend on paying your mortgage every month and improving your home is now a long-term investment benefit for you instead of a landlord.

When you rent a property, you don’t receive any equity for your investment, and you don’t have the pride of calling your home your own.

If you’re ready to settle down for the long term, buying a home is often a wise choice.

There are a number of ways to get financing to buy a house.

You don’t need to save 20% for a down payment.

There are programs where buyers can pay as little as 3% down, and depending on what programs are available, you may be able to get down payment assistance, so you can potentially start building your future now.

Of course, owning a home still might not be the right decision for everyone.

It is a large investment decision and not only can it be financially hard to make that decision, and it can also can be an emotionally hard situation.

So, before you make that decision, make sure the time is right for you and your situation.

Steve Olmos
Selling real estate in Southern California since 1980

Steve Olmos, www.sellfasttoday.com/contact information
Homequest Real Estate

Diana Olmos, www.mortgagemarketingmentor.com
Statewide funding Inc.