Wednesday, May 25, 2011

In This Corner: Owning! In That Corner: Renting!

I work with a lot of people that start out looking for a rental apartment, but then when they realize that moving in to a rental may end up costing the same as a down-payment on a new home, they sometimes opt towards a purchase.

There are many benefits of owning a home, especially as a newly-hitched couple. These benefits include: building wealth, equity, and stability; freedom from a rental; and most importantly - independence as a couple. No more doing laundry at mommy's house. Although it's cyclical, real estate will appreciate over time so you can make a profit when you sell. There are tax breaks, and of course more room to grow your family. Home owners with fixed-rate mortgages will have the same mortgage payment for 30 years, so there are no surprises. Renters are constantly seeing increases every year that can escalate and force them to move when they are not ready.

The feeling of home ownership is unlike any other. There is no restrictive lease to keep you from making a new place your own. You don't have to worry about whether or not you will be getting your rental deposit back in the end. You want to paint a wall bright pink? Go right ahead. You want to turn your living room into a game room? No one is going to stop you. You want to build a roller coaster in your back yard? It's all you! Your neighbors may not be too happy about that, but it’s your yard! There are also financial pluses, such as deducting the cost of your mortgage loan interest from your federal income taxes, and usually from your state taxes. This can add up to huge savings by years end. If you rent, you write a check on the first of the month and it goes right into someone else's pocket, and vanishes to who-knows-where? 

I know what you're thinking. "I don't have enough for a down-payment." With FHA loans which are backed by the government, all you need is 3.5% down. Banks are also doing 95% and 94% financing which is credit score driven (Click here to read my post about credit scores). 

In a nutshell, the pros of owning definitely outweigh the cons, especially when you're starting your new life together. I think buying is a TKO in this fight!


  1. You want to build a roller coaster in your backyard? It's all for you! May not have neighbors very happy about that, but for your yard.

    Rental Management

  2. There are many benefits to owning a home, especially as a couple recently tied. These benefits include: building wealth justice stability.

    Houston Realtors

  3. We have the perfect yard for a roller coaster- sadly, our neighbors would probably hate us haha!

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  5. I wish we could buy, but we have no savings for a deposit, I will not say anything to rent and we pay close enough the same as we would if we were buying.

    richmond real estate