Ten Great Reasons to Buy Vs. Rent

I’ve got a friend that tells me every December that “this is the year I’m finally going to buy a house.” And I know he “thinks” he means it, but never gets around to pulling the trigger on the buying process.

I’m a licensed real estate agent so I’m probably a little biased — but I think he’s missing a great opportunity on this one. Most of Central Ohio is still a buyer’s market but the numbers are swinging back to a “normal” market (defined as about six months of inventory on market) in places like Delaware. So the time while buyers have the “upper-hand” in negotiations may be coming to an end.

Here are ten great reasons to buy a home versus renting.

Renting your home can seem like your money is in a funnel running away from you. (art used with permission)

1. Quality of life – a home provides stability and security for you and your loved ones.
2. Pride of home ownership – it’s your personal haven and you’re your own landlord.
3. Historically low interest rates – around 5 percent in the U.S.
4. Tax Credit – U.S. government provides a special $8,000 incentive for qualifying first-time buyers and a $6,500 incentive to buyers that were in their former home for at least five years.
5. Appreciation potential – your home investment can grow in value.
6. Equity buildup and debt pay down – homeowners enjoy an average net worth of approximately $184,000 vs. $4,000 for renters.
7. Leverage – where else can you buy an investment of this magnitude
   with 5-10 percent down?
8. Tax deduction advantages – property tax and mortgage interest write-offs.
9. Tax exemption – up to $500,000 per couple or $250,000 per person on sale of a primary residence in the United States.
10. The real cost of renting – at $800 per month, with the average 6 percent rental increase per year, you will pay $126,536 over a 10-year period but have zero ownership of the property.

Now there are great reasons to continue renting. For example if you don’t plan to remain in your current location for more than three years, it may be in your best interest to rent. But I think you should at least take a look at the options.

If you are interested in taking a look at buying a home, give Toby Boyce a call at 740.990.9748 or contact us through the Web site.

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