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.

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This information is deemed reliable but not guaranteed. You should rely on this information only to decide whether or not to further investigate a particular property. BEFORE MAKING ANY OTHER DECISION, YOU SHOULD PERSONALLY INVESTIGATE THE FACTS (e.g. square footage and lot size) with the assistance of an appropriate professional. You may use this information only to identify properties you may be interested in investigating further. All uses except for personal, non-commercial use in accordance with the foregoing purpose are prohibited. Redistribution or copying of this information, any photographs or video tours is strictly prohibited. This information is derived from the Internet Data Exchange (IDX) service provided by San Diego MLS. Displayed property listings may be held by a brokerage firm other than the broker and/or agent responsible for this display. The information and any photographs and video tours and the compilation from which they are derived are protected by copyright. Compilation © 2024 San Diego MLS.

Deborah Kerch: CA DRE #1441209
Orchard Realty, Inc.
2526 Washington St – Julian, CA 92036
Phone: 760-765-1000

CA BRE #01441209 | CA BRE #01934854

Corporate DRE: #01950433

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