Rent or Buy…You Decide

Have you ever considered how much you pay in rent over an extended period of time? It is probably a lot more than you realize. The amount you spend for rent each month could be applied to a mortgage, not only building equity in your own property, but, in most cases, substantially reducing the Federal and State income taxes you pay each year. And, what happens to your rent money? It’s gone! There’s no interest, no equity, no return. To determine your home-buying ability, call your real estate agent or lender.

Here’s a chart to help break down how much you’re paying in rent:

RENT

  • No interest-payment deductions
  • Rental amount may increase at any time
  • Landlord approval needed for any changes
  • No capitalization; your money disappears forever
  • Rental is temporary and often subject to a 30-day notice

BUY

  • Mortgage interest may be tax deductable
  • Decorate and make changes, without prior landlord approval
  • The value of your property may increase in time
  • Your house will become a home, not a temporary living situation; you are not at the mercy of a landlord