buying vs renting
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Buying vs. Renting
By: Samantha NagrabskiLaRae MorrisNathan Kay
Advantages of Buying
Tax Write-off Upgrades to your home can be made as
you see fit Equity is built as the value appreciates The control of Loan payment options A pride of homeownership
Disadvantages of Buying
Responsibility for property maintenance Must wait for market conditions to be right
before even selling, renting, or leasing property
You must pay for all your own utilities, property taxes, and insurance
Home improvements can run
high in price
Advantages of Renting
Landlord handles general repairs The freedom to move once your lease
expires Place may already include utilities, property
taxes and property insurance You're not financially responsible
for improvements
Disadvantages of Renting
No tax write-off Need permission to make any changes Your money goes towards the landlord's
equity Rent can increase periodically You have no ownership
When to BuyTrulia’s Rent Versus Buying Index favors
home buying over renting in 72% of the nation’s top cities...Including:
Miami Las Vegas Phoenix San Antonio Atlanta Detroit
When to Rent Best advised for people:
With a high debt ration (50% or more) That have jobs that are in jeopardy With bad credit (usually below 620) Who relocate frequently Not in a position to pay a higher
mortgage When living in areas like Los Angeles or
New York City
Overall If you stay in your home for 6 years,
renting is better. If you plan to stay in a home for more time, buying is better.
Buying allows more long-term benefits while renting is more of a short-time fix
Buying saves money over the long-term since price declines over time