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Calculation: Owning VS Renting

the cost of renting vs the cost of homeownership

Most young adults use a calculator to figure out their financial snapshot......to rent or to buy!  Calculators aren't always the best method to help them make their decision.  Renting means paying the mortgage loan for the owner of the property and collecting receipts.  Buying means you have many more choices and
benefits that can start building a financial portfolio early in your working career.

Renting offers no tax benefits.  Owning your own residence offers tax benefits by way of tax deductions for property taxes and interest on the mortgage loan.  The
deductions you receive annually for property taxes and interest paid on the
mortgage loan are enough to make the buying choice better.   No calculator will tell you that.

Calculators can't take into consideration future home values.  Rents are raising rapidly at 5% annually while home prices  increased at a rate of .02% in the same period.  Renting today can be a good deal, but could soon turn into a bad dea.  


Time in your home is easy to calculate in your decision making process.  If you are planning to stay in one place for at least 5 years, you are better off buying a home.  The recent housing recession has changed that rule of thumb for some market places to be two years instead of five years, either way length of time in a home should be figued into your calculations.  

Homeownership offers many non-financial benefits that are impossible to calculate.  Homeowners have the freedom to do most anything to their home and will never need to move because of the wishes of their landlord.

Our local market offers many homes that you can purchase and have payments similar to rent payments.   Contact me and let me show you your options! 

 

Carol Murphy

Keller Williams, Greater Cleveland ~ Carol Murphy Team

Homes for Sale in Avon Lake

This post is contributed by a community member. The views expressed in this blog are those of the author and do not necessarily reflect those of Patch Media Corporation. Everyone is welcome to submit a post to Patch. If you'd like to post a blog, go here to get started.

pete February 18, 2013 at 08:09 PM
nice one sided story - did not mention the cost of fixing and maintaing the home you buy, plus property taxes, renting is always better.

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