Is it Better to Buy or Rent a Home?

March 3, 2014by Deborah Kerch

Is it better to buy or rent a home, which solution is a better financial bet? Every six months Trulia’s chief economist, Jed Kolko, runs the numbers to answer that question. Trulia’s Winter 2014 Rent vs. Buy Report tells us that across the U.S., homeownership remains 38% cheaper than renting based on the following assumptions: The buyer secures a 30-year, 4.5% mortgage rate; pays 20% down; itemizes his federal tax deductions; falls in the 25% tax bracket; and stays in the home for 7 years.

There are many advantages to owning a home. Depending on where you live, you can pay the same as renting, or even less, while often building equity (the difference in how much the home is worth over how much you owe on it). In addition, you may be able to save on your federal taxes by deducting the interest paid on your mortgage.

Other benefits of owning include:

  • Stabilizing your payments
  • Having a secure place for your family to live
  • Gaining a sense of community

The advantages of owning or renting are different for everyone, so be sure to consider your personal situation and long-term goals and then consult with a mortgage loan originator before making your decision. You can click this link here now for more real estate info !

You can look for rentals on AirBnB. For hosts, participating in Airbnb is a way to earn some income from their property, but with the risk that the guest might do damage to it. For guests, the advantage can be relatively inexpensive accommodations, but with the risk that the property won’t be as appealing as the listing made it seem.

Contact us today to get assistance with any of your Julian Real Estate needs

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2526 Washington St – Julian, CA 92036
Phone: 760-765-1000

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