Are you a renter interested in buying a home, or a homeowner wondering whether renting makes more sense at this point in your life? Maybe you’ve never rented or bought before? It’s time to evaluate the relative costs, benefits and drawbacks of owning vs. renting.
If you have not been at your job for at least one year, then renting is your best option, and then during that time you can pay bills and payments on time to establish a good credit score.
If you have been at your job over a year and have established a median credit score of 650 or higher, you should be able to purchase a home with little or no money down and take a federal tax deduction. If you itemize your federal income taxes, you can deduct your property taxes and the interest paid on your mortgage, reducing your overall income tax burden, often substantially.
Rental payments in contrast have no such advantages. Indeed while a portion of such mortgage payments goes toward increasing your stake in your home by increasing your equity, rental payments go entirely to your landlord, and tend to grow over time.
In the long run, the cost of renting can be much higher than buying.
Once again, my name is Terry Stewart with Poplar Bluff Realty. Where our mission is to bring families home.