Back HomeShould I Buy or Should I Rent?
If you’re thinking of investing in a house now or wondering whether you should wait and continue renting, here are three important things to consider:
- Renting vs. Buying: If you rent a home, it could cost you less each month…and you might have more money to invest in other endeavors. But if you invest in a home you can benefit from a huge tax advantage where you can deduct mortgage interest and property tax payments as well as other expenses from your federal taxable income.
- Housing Prices and Interest Rates: You may be waiting for the housing prices in your area to fall. They may not. However; usually when they do, the interest rates will be higher. The amount you gain could be significantly less over the long term cost of the mortgage. Therefore, waiting may not be in your best financial interest.
- The Break-Even Point: The average break-even point for buying and selling a house is five to seven years. If you plan on renting for longer than this time frame then buying could be a good economical consideration.
