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Information on mortgages, home equity loans, and consumer credit to help you use the power of financing to your advantage.
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Mortgages > Purchase
Rent or Buy
One of the questions that would often be asked, whenever people found out I was in the mortgage business was, should I rent or buy a house?
I would answer; “rent or buy” depends.
Most of the time you are better off owning a house rather than renting but there are circumstances that would make renting an advantage. Let me explain some of the differences in each.
Rent or Buy
1: Rent payments are not normally tax deductible while the interest on a mortgage can be deducted.
Rent or Buy
2: Rental properties realize no capital gain for the renter while the home owner usually enjoys a value increase in his investment.
Rent or Buy
3: Homeowners have flexibility and control over the repairs, reconditioning, enhancing and any other changes they may wish to make to their property while renters generally have to leave the property in the same condition.
Rent or Buy
4: Homeowners have some influence over variances and bylaw changes that may affect their lifestyle. Renters have no such rites.
Rent or Buy
5: Homeowners can enjoy a capital gains tax rate if they own the property long enough.
These reasons all favor buying. Now I’ll give some reasons to rent.
Rent or Buy
1: Renters are generally not responsible for major repairs.
Rent or Buy
2: A lease can be tailored to match the time requirements the renter needs the property.
Rent or Buy
3: The start up costs of renting is virtually non existent.
Rent or Buy
4: Renters can usually have a less established credit rating.
So, the answer to rent or buy is still, it depends..
• Apply now for a home loan!
The tips on this website should be considered food for thought only. Lendingtips.com is a clearinghouse of ideas, not a professional adviser. Before any important decision, please consult the appropriate professionals (lawyer, accountant, real estate agency, broker etc.).
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• Mortgages > Purchase Articles Archive
• Mortgage Loan Calculator Use this calculator to determine your monthly payment and amortization schedule.
• Mortgage Qualifier Can you buy your dream home? Find out just how much you can afford!.
• Refinance Breakeven Should you refinance your mortgage? Use this calculator to determine when you will breakeven!
• Rent vs. Buy Are you better off buying your home, or should you continue to rent?.
• Amortizing Loan Calculator Enter your desired payment - and let us calculate your loan amount. Or, enter in the loan amount and we will calculate your monthly payment!
• ARM vs. Fixed Rate Mortgage Use this calculator to compare a fixed rate mortgage to two types of ARMs, a Fully Amortizing ARM and an Interest Only ARM.
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