January 14, 2009

Buy vs. Rent

Posted to Marcy Hammett

Today, more than ever, it’s TIME TO BUY rather than Rent.
5 reasons why:

1. Save Money - Often a Renter pays more per year on rent than a Homeowner pays in mortgage payments, due to the tax benefits of homeownership. If you can make the higher monthly (mortgage) payments “up-front”, at the end of the year your savings can be significant. Why? First or all, rent is not tax deductible, but the interest portion of your mortgage payment is & during the early years of your mortgage most of your payment is interest! Plus, you can deduct your annual property taxes & a portion of the closings costs when you initially purchase (all of these deductions require itemizing on Schedule A, rather than taking the Standard Deduction*).



2. Appreciation of your Investment – Homes WILL APPRECIATE again, in some areas they never stopped.



3. Independence & Pride of Ownership – You are in control; YOU decide how to improve your property & YOU benefit from your efforts, not the landlord.



4. Money is Cheap – Interest rates are low & mortgage money is available, no matter what the media says. There are low down payment programs & I can recommend lenders that will find the one that’s best for you.



5. Prices are Down – There are great values to be had. Take advantage of this opportunity now, it won’t last forever (search for your new home at www.marcyhammett.com.)

The following article offers a detailed comparison of “Renting vs. Buying”. It’s great information; long but worth the Happy Ending. If you tend to scan articles, rather than reading them word for word, please don’t miss the Inflation section, this is where it really gets good! Click here to read the article.

*Remember, I’m not an accountant or an attorney; please consult a professional for tax & personal financial decisions.

Posted By: Marcy Hammett

Tagged With: buy vs rent, buying a home, home prices and renting a home