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Should I Buy or Rent a Home?

Although renting is sometime an easier process, you may want to consider that real estate values and interest rates are at a low.  Prices and rates are starting to edge up slowly; there is no telling where things may be in a year or so.  Another factor you may want to consider is when you make a rental payment the money is gone and you have nothing to show for it other than a place to live. When you make a payment when you are buying a home a portion of the payment is going towards equity and you are paying off your investment. Additionally the interest and taxes are a write –off which can help you. You can discuss the exact tax benefits with your tax professional.

In most rentals you cannot make changes such as paint colors, or the option of having a pet since there is a landlord who controls the property.

On the purchasing side there are many options to explore. FHA allows you the option of putting down only 3.5% of the purchase price and you can ask the seller to assist with your closing cost up to 6% of the purchase price. In most cases this covers the closing cost!  Depending on your income, and the property’s location there is a 100% financing option which is for rurally oriented properties called a USDA Loan. On a 100% financing option you are not required to put any money down and if the seller is willing can still contribute up to 3 % towards your closing cost making the financial aspect of getting into a home extremely easy and very affordable!  The best part of the USDA loan is I believe there is no private mortgage insurance applicable. I would suggest you consult a lender to discuss your options and the various programs based on your personal financial situation.

Bottom line Renting or Buying a home is a personal choice for each individual

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