Real Estate Blog

Should You Rent Or Buy A Home?  

Everyone needs a place to live and there are basically only two options. You can rent or buy, so which one is the best choice?  The choice is different for everyone and should be carefully considered as buying a home is one of the biggest purchases that most people will make in their life.

There are a number of advantages to buying over renting.

• Owning a home is an investment. When you rent, 100% of your rent payment goes into your landlord's pocket. When you are buying your home, each month part of your payment goes towards paying down your principal balance. 

• Additionally, when you make improvements to your home this usually increases the value of your home and your investment.

• Owning a home provides protection from inflation. We all know that prices go up over time and so do rents. As long as you get a fixed rate mortgage, your mortgage payment will stay the same over 30 years. I think it's safe to say that your rent will not be the same in 30 years as it is now based on historical facts. 

• When you own your home, you also build equity over time. Equity is the difference between what you owe and what your house is worth. You build equity in your home two different ways. You build equity as the value of your house increases, and you also build equity as you make mortgage payments and your mortgage balance shrinks.

• There are tax advantages to owning a home. The interest you pay on your mortgage and real estate taxes are tax deducible. This means you will typically pay less taxes if you own a home.

• Many homeowners also feel satisfaction from owning their home. Home ownership is truly the American Dream. When I meet with my clients, I always ask them why they want to buy a home.  Many people tell me that it is because they want something that is "theirs". They don't want their landlord telling them that they can't paint the walls or hang up pictures of their family. They want something that they can make their own. 

With all of these advantages, I honestly feel that owing a home is a great benefit and can improve your quality of life. If you want to learn how to buy a house and achieve your dream of becoming a homeowner, give me a call today!

This post was written by local lender Amanda Rea. Amanda Rea is a full-time, Senior Loan Officer at Guild Mortgage in Reno-Sparks, and a regular contributor at MyRenoSparksRealEstate.com . She is passionate about helping buyers pursue their dreams of home ownership. Feel free to contact Amanda directly with any comments or questions at 775-345-3155, and via email at area@guildmortgage.net.  You can also fill our this online form to get started on your path to home ownership!   

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