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Buying vs. Renting


The thought of buying a home for the first time can be intimidating. So much that many people don’t stop and think about all of the advantages of home ownership. Here are the key things to consider when you are making the decision to buy or continue to pay rent.

Financial Considerations
Down payments- Gone are the days of banks requiring 5%, 10% or 20% down on a house. Many new loan programs require little or no money down. Many lenders will also consider rolling some or all of the closing costs into the mortgage. This makes the dream of home ownership easier to realize.

Down payment
Buying
  • Little or no down payment required depending upon the loan product. Your down payment is automatically equity in your home.
    Renting
  • Typically first and last month’s rent and a security deposit required.


    Monthly payments-
    There are four components of a monthly mortgage payment: Principal, Interest, Taxes, Insurance. When combined, a mortgage may be equal to or slightly more than what you are paying in rent. But consider this:


    Principle
    Buying
  • When you apply your payment to the principal of the loan, you are actually building equity.
    Renting
  • Your entire rent payment goes directly to your landlord.

    Interest
    Buying
  • The interest you pay on a mortgage is tax deductible.
    Renting
  • There are no tax deductions for renting.

    Taxes
    Buying
  • Your real estate taxes are also tax deductible.
    Renting
  • There are no tax deductions for renting.

    Insurance
    Buying
  • Homeowners insurance covers against theft and damage to home or personal property.
    Renting
  • Renters insurance covers personal items, however, nearly 70% of renters do not have insurance, leaving them vulnerable to loss.

    After factoring in tax deductions, often, home ownership is often much more favorable to renting. Especially when you consider the additional space and improved quality of life. You should also consider home appreciation.

    Home appreciation-
    A home is a long term investment. Rarely do houses depreciate and even if they do, it is only temporary.
    Buying
  • Home ownership has been a tried and tested long-term investment.
    Renting
  • You have no equity in your apartment so appreciation is not applicable.

    Personal Considerations
    Beyond long-term financial advantages of buying, also consider these advantages.


    Ownership
    Buying
  • Your home is your castle and there are few moments in life more satisfying than moving into your home.
    Renting
  • You are living on someone else’s property, paying their mortgage for them.

    Living Space
    Buying
  • Decorate, re-model, re-decorate, paint walls the way you want. Your vision is your only limit.
    Renting
  • Limited to what your landlord will allow and all changes must be undone at the time of move out.

    Establishment and Stability
    Buying
  • Home ownership makes you part of a community and gives you a sense of achievement and fulfillment of a dream.

    •  Renting

  • makes you less rooted in the community and also subject to a landlord’s yearly rent increases.

    As you can see by these comparisons, there are many reasons to consider purchasing a new home if you’re currently renting. It’s a cliché to tell someone to “stop throwing away money on rent”. But "Team Lupe" is committed to show you just how simple and affordable home ownership really is.

    In the long run, you are probably losing money by renting instead of owning your own home. So wouldn't you rather be building up equity in a home than giving your hard-earned money to your landlord?

    If you would like any information about the home buying process, the current market and how you might qualify to own your own home, do not hesitate to call or email me. Please return to the HOME page of this website and search for available properties or you may contact us for rental/lease information and current availability at (254)458-4497 for the Fort Hood sorrounding areas...

    Thanks again.
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