Renting versus purchasing depends on many factors. In today’s market, the most immediate concerns are rapid rent and home price increases and current interest rates.
Rental vacancies are at 10-year lows. Renters make up about 35 percent of the U.S. households. This percentage will only grow over the next 10 years, as Baby Boomers downsize and 20-somethings move out of their parents’ homes. A shortage of rental housing will increase demand… and rents.
Consider the Costs
If you are or are planning to rent, these are some associated costs:
- Initial Costs: Security deposit
- Yearly Costs: Monthly rent and renter’s insurance
- Early Release Costs: Security deposit and all month’s rent remaining on the lease agreement
If you are planning to purchase a home, here are some costs to consider:
- Purchase Costs: Down payment and closing costs
- Yearly Costs: Monthly mortgage payment, condo/community fees, renovation costs, maintenance costs, property taxes, and homeowner’s insurance
Length of Stay
If you are planning to stay in one location for at least seven years, purchasing is usually your best option. Look at your particular situation and where you plan to be in seven years: Will you change jobs? Will you start a family? Will you have more children?
Tax Benefits
The tax benefits of homeownership can be a nice perk, so talk to your tax consultant in order to make an informed decision regarding your particular financial situation.
Use this Rent vs. Buy Calculator to see what’s better for you.
To find out current rates or to get a payment quote call my Indiana Platinum Home Mortgage Office at 765-429-4444 or 1-888-830-3636.
Read more at our corporate blog site original atricle. http://blog.phmc.com/2014/02/18/purchase/rent-vs-purchase-which-is-right-for-you/
Hoosier Lender Indiana Mortgage Blog 
Having an emergency fund in place before you buy is a wise Idea. For those home ownership emergencies.