February 7th, 2018 7:15 AM by Jackie A. Graves, President
a home in order to build equity is one of the main financial reasons
prospective buyers jump into the market, but many people also yearn for the
satisfaction of home ownership.
your rental apartment walls mango or some other trendy color may put your
security deposit in jeopardy. But taking that same sense of color style and
applying it to a tired room in an old house you just purchased is called “sweat
equity.” That has a nice ring to it.
is definitely an upside to renting:
are upsides to buying a home:
a home is a good investment — and let’s face it, you have to live somewhere —
many financial experts caution against purchasing a home simply as an
investment. Historically, the real estate market increases have been slow and
steady, not meteoric (until recently). The stock market, on the other hand, has
generated returns of between 8 and 10 percent pretty steadily for decades.
depends on your market and where you choose to live. And consider whether or
not you like to do maintenance. Homes cost money. Appliances break, roofs leak,
and you are the lucky soul who gets to pay the bill. If you are renting,
landlords pay the plumber and water/sewer and garbage bill to go along with it.
of course, there is that tax break. Depending on your tax bracket, a first-time
purchaser’s 1040 tax deductions heavily subsidize housing expenses in the first
few years. Since a 30-year
fixed mortgage requires high interest payments — all deductible — at
the beginning of the loan, you deduct a larger share of the mortgage cost early
in the life of the loan.
vs Buy Calculator to help determine if it is cheaper to rent or
buy a home. Our calculations will also help you determine your breakeven point
of when your buying costs will equal your renting costs.
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