Should You Own Or Rent Your Home? 5 Considerations
When we search, for the best place, and scenario, to live, which will, serve our needs, and financial necessities, many attempt to decide, whether, they would be best - served, by buying a home, of their home, or renting a place to live. Both of these have specific advantages, as well as challenges/ obstacles, and, therefore, it is wise, for individuals, to determine, the best course of action, and which is best, for their personal set of circumstances, and needs. With that in mind, this article will attempt to briefly examine, consider, review, and discuss, 5 considerations, which should go into the best decision, for them to take.
Present income: It makes little sense, to be, house - rich, and cash - poor! Home ownership is only enjoyable, and satisfying, when/ if, it is affordable. Therefore, the process, should begin, with examining his present income, what he qualifies for, and can afford. In addition, it's important to proceed, wisely, and in a way, which might, create significant additional stress, when other obstacles, are placed in our path. Also, your income will determine, how much mortgage, you qualify for, etc.
Job security - future outlook: Although you might believe, you can certainly afford the monthly payments, and have sufficient additional resources, for contingencies, based on your present economic situation, life often changes, whether it serves our purposes, or not! Therefore, one should evaluate the likelihood of job security, and, the realistic, future outlook, in order to best prepare, to make the decision, which makes the most sense, for them.
Available money/ down - payment: How is your personal cash flow, as well as cash - on - hand? Purchasing a house requires a significant down - payment, and closing costs. When one rents, he must only make monthly payments, and needs, generally, only a deposit, and one, to two, months rent payments.
Tax status/ considerations: Although the new tax law, for some, significantly reduced, the tax benefits, of home ownership, by capping the real estate tax deductions (to a maximum of $10,000 per year), mortgage interest paid, as well as those deductions for taxes to the capped - level, are still deductible, and, therefore, there might be an advantage, from a tax perspective, for individuals, in specific brackets. Consider the net cost, per month, between owning and renting.
Personal objectives: Do you plan to relocate soon, or are you new, to the area, and uncertain, whether you might enjoy living there? If so, renting might be a better option, because it requires far less commitment, and/ or financial risk/ Are you handy, and prepared for the maintenance and repairs, associated with owning?
The wisest way to proceed, is with, eyes - wide - open! The objective should be, to do, what's best for you, your comfort zone, and goals, perspectives, and objectives!