| Buying a home versus renting a home has been | | | | the value of their home increases. This equity can |
| an internal debate many homebuyers and | | | | become a major factor in their overall financial |
| would-be homebuyers have had. With no shortage | | | | picture. The ability to take out home-equity loans |
| of advice from well-intended friends and family, | | | | and other lines of credit is a major financial benefit |
| the decision can become quite difficult for | | | | to buying a home.Ability to Move FreelySome |
| potential homebuyers.The easiest way to | | | | people who consider renting over buying a home |
| determine if you should buy or rent is to look at | | | | point to the fact that they can move more freely |
| the pros and cons on each side of the issue. Once | | | | if they rent rather than being tied down to a |
| you have reviewed the pros and cons, you can | | | | house. Of course, the fact that leases lock a |
| determine which makes more sense for you.The | | | | renter into the rental for a defined period of time |
| home buying versus renting debate usually | | | | shatters that notion. In fact, many people have |
| centers on the following topics:* Financial | | | | found they can move more quickly and easily if |
| considerations (costs) | | | | they own a home by either renting it or selling it |
| * Ability to freely move | | | | when they want to move, without worrying |
| * Tax benefits | | | | about breaking a lease or losing security |
| * Overall life planFinancial ConsiderationsFor most | | | | deposits.Tax Benefits of Owning a HomeThe tax |
| homebuyers and would-be homebuyers, financial | | | | benefits of owning a home are substantial. It's a |
| considerations are the most important factor in | | | | good idea to speak to your accountant or tax |
| making the decision. Though some financial | | | | advisor about the benefits of owning a home and |
| experts are shocked that this is even an issue, | | | | paying a mortgage (instead of paying a lease on a |
| many understand that the confusion over | | | | rental).Homebuyers benefit from tax deductions |
| finances is primarily due to misinformation.Most | | | | and can build equity in their home. This gives |
| potential homebuyers are shocked to learn that | | | | people greater financial flexibility and more |
| they can buy a home and pay very close to (or | | | | opportunities.Some homebuyers take periodic |
| even less than) what they are paying for rent. In | | | | home equity loans to remove the equity in their |
| fact, it is usually a good idea to sit with a | | | | house and invest it in higher interest, safe |
| mortgage banker early on in the process and tell | | | | investments. This helps improve their overall |
| him or her how much you would like to spend per | | | | financial outlook. Home equity loans can also be |
| month for housing. This can frame your search, | | | | used to pay off high-interest debts. The reality is |
| because a mortgage banker can tell you | | | | that homebuyers have many more options at |
| approximately how large a mortgage you can | | | | their disposal than renters do.The Big PictureMost |
| carry for that monthly payment.The Home Equity | | | | people who choose renting over buying make the |
| FactorIn addition to finding a home similar in | | | | decision based on misinformation. The best thing |
| monthly costs to your rental payment, you also | | | | to do is research options, speak to professionals, |
| benefit from the equity that builds in your home. | | | | and then make an informed decision on whether |
| When making a rent payment, you are paying for | | | | or not you should rent or buy your home. After |
| the right to live in your home for a period of one | | | | research, some may still believe renting is better. |
| month. At the end of the lease you have nothing | | | | But most will find the decision is fairly obvious and |
| to show for it, other than the fact you had a | | | | will choose to buy a home.* Copyright 2006, |
| home for that period of time (which of course is | | | | Brandon Cornett. You may republish this article if |
| a great thing).Home owners build equity as the | | | | you keep the byline and author's note, and also |
| amount they owe on their home decreases and | | | | leave the hyperlink intact. |