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Tired of renting? It’s Time to Buy!

Your landlord is raising the rent. The neighbors are yelling at each other through paper-thin walls. You’re a trembling jealous wreck because your best friends just bought a new home and it’s awesome. Renting just isn’t doing it for you anymore. Is it time to buy your next home? It could be, if you compare the two lifestyles. 

The primary reason to buy a home is simply because you’re ready – financially as well as psychologically ready. Perhaps you’ve taken a new job, married, or have a child on the way. You want more room for your family, or to live in a certain neighborhood close to work and other activities. To make your decision, you must weigh the pros and cons of renting VS owning so that you can achieve the lifestyle you want. 

You know why you rented in the first place. It’s initially affordable post-graduation, and you like the freedom of movement as you’re not sure where you’ll end up as you navigate the working world and possible job changes. You can pick up and move when your lease is up. You may have access to more amenities like swimming pools and workout rooms. When the dishwasher breaks down, the landlord bears the repair or replacement costs. But, they can also raise rents and charge hefty deposits which is the reason you may not have allowed yourself to get a pet so far. As a renter, you must leave the place in the same condition as when you rented. The deposit you paid to rent your apartment was steep, but you likely will get part of none of it back, due to cleaning, repainting and repair fees.

As a property owner, your down payment and closing costs are significant, and you may have to save a little more to get into a home. Once you close on your home, it’s yours to live in as you see fit. You can choose the paint, flooring, and window treatments you prefer. You can add your own swimming pool and workout room. And you can get the Irish Wolfhound rescue of your dreams. You’ll build equity to the point that could own the property outright in time and never have a house payment again. But best of all, you’re giving your household members a different lifestyle – one that’s more private, quiet, and stable, as neighbors also have a vested interest in the continued desirability of their enclave.

Building something of value is important. While the population has continued to grow, housing units have not kept pace.  Competition for homes is high and affordability has been improved by near record-low mortgage interest rates.  

Yet many people are still afraid to buy, preferring the “security” of renting. If you’re scared to take the plunge into homeownership, look at long-term trends – that housing prices typically beat inflation and then some and that you get important tax advantages.  

But most important, the home you buy will help you provide the surroundings you want for your household, which is a small price to pay for having to fix the sink yourself. When you rent, you build equity for the landlord, not for yourself. When you own, your monthly mortgage payments go to reduce interest, which is income-tax deductible. A portion of the payment goes to reduce the principal of your loan, allowing you to build equity ownership.