Renting vs. Buying
Channel: Felix Altamirano, PMZ Real Estate, DRE# 01432838
Date: 2019-08-12

Renting vs. buying a home is a big decision, and there are pros and cons to each option.

In this video, I touch on some the benefits of home ownership vs. renting.  

For some people, renting comes down to what they can afford at the moment.  The answer to the rent vs. buy a home debate isn’t so cut and dried. Here are five questions to ask when considering renting vs. buying:

What can you afford?
How long do you plan to stay in the home?
Do you want stability or flexibility?
Can you afford to be responsible for home repairs/maintenance?
What are your financial, career and family goals?
Renting vs. buying a house: Calculating the costs
There are different costs associated with renting and buying. 

Most rental properties require a security deposit, which protects the landlord against damage caused by the renter. You’ll usually put down the first and final month’s rent payments when you sign a lease. When evaluating a lease contract, ask if your monthly rent includes utilities, such as water, electric, gas, cable or internet.

For homebuyers, one of the biggest ongoing costs of homeownership is your monthly mortgage payment, which includes the loan’s principal and interest amounts. Your payments can go up or down over time if your loan is variable rate or your property taxes and homeowners insurance premiums change. If you put less than 20 percent down, your lender will typically require you to purchase private mortgage insurance, or PMI, which drives up your monthly payments, too.

Be prepared for some of the hidden expenses that come with homeownership that catch many first-time homebuyers off guard and can lead to buyer’s remorse.

“During the process, the buyer will need to pay for a home inspection and for any quotes for repairs needed from contractors. They will also put down at least 1 percent of the sales price for earnest money."

Having a sizeable down payment — anywhere from 3 percent to 20 percent of the home’s purchase price — is expected. If you’re purchasing a property in a homeowner’s

Differences between renting vs. buying
Renting vs. buying a home isn’t a matter of ownership. Here are other key differences between the two options.

Buying a house can build equity

Homebuyers can capitalize on the equity their home accumulates over time. That means if the home’s value goes up, you’ll cash in on the higher value when you sell.

Another factor for buyers to consider is whether you will be able to deduct the mortgage interest at tax time. Tax laws allow those who itemize their taxes to write off their mortgage interest payments. 


LINKS:
Website: https://www.altamiranorealty.com/
Instagram: https://www.instagram.com/soldbyfelix/
Facebook: https://www.facebook.com/altamiranore...
Twitter: https://twitter.com/faltamirano77