Owning vs. Renting a Home: What’s Right For You?
06/12/2012 - 18:00 ||
There’s no denying that buying a home is one of the biggest milestones in your life, but can also be one of the most confusing if you don’t have the right tools to help. A recent TD Bank survey found that 66% of women intend to buy a home and 84% of young renters intend to buy a home. Buying a home isn’t for everyone and it’s important to know the benefits of owning a home vs. renting in order to determine what’s right for you. Here are a few things to consider when deciding to take the step to homeownership.
Reasons to Rent:
- Flexibility – By not being locked into the equity of a home, you can explore different areas without committing tojust one, as well as have the flexibility to react more quickly to unexpected career or income changes.
- Improving your Credit – By making on-time rental payments and building a positive credit history, you can build the credit you need to qualify for a mortgage.
- No Maintenance – Household maintenance is the responsibility of the landlord.
- Incidental Expenses – When renting, many utilities may be covered by the landlord such as water, sewerage, garbage and in some cases heat and hot water.
Reasons to Buy:
- Pride of Ownership – 49% of current homeowners polled in a recent TD Bank survey stated that purchasingtheir first home was a proud moment; having your own home to enjoy with family and friends creates unparalleled pride.
- Creative Control – Feel free to paint or remodel as you wish to make your house into a home.
- Tax Deductions – As ahomeowner, you may deduct mortgage interest as well as your property taxes (consult a tax advisor about tax deductibility).
Owning a home requires a large investment of time, money and energy, so you should make your decision to buy a home carefully. If you’re ready to make the transition from renting to owning, choose a bank partner who can walk you through the home-buying process, help you make decisions with confidence toborrow smarter and will suit your unique borrowing needs.
Do you own your home or rent? If you rent, are you looking to buy in the future?
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