Is Buying a Home Better Than Renting?

Jul 01

Depending on how you’ve been brought up and what you have learned over the years, you may have a belief or a preference on whether you should rent or buy a property.

When you buy a home, perhaps with the help of someone like this realtor Lynchburg, and start to pay off your mortgage, you are paying off something that will most probably be worth more in the long run than you initially paid for it. Granted you will be paying back more than what the property was worth at the time of purchase, as that’s how loans work, but at the end of it, you will own the property outright, at which point you won’t need to pay anything to keep a roof over your head. Of course, there are costs such as taxes, but these you would pay regardless of whether or not you owned or rented.

The tax benefits might differ if you own a property overseas. Foreigners will be taxed on any property they own in most nations. Property acquisitions and sales, as well as rental revenue, are frequently subject to local taxes. You may even have to look for mortgage-related information from Simon Conn or other similar websites on how to manage the finances with regard to these properties.

On the other hand, when you are renting you are paying someone else in order to live in that particular property and may even be paying off the mortgage that they have for that property. Once you, or other tenants who have stayed at that property, have paid off the mortgage, the landlord will own the property outright. This means that any future rent the landlord gets will be an additional source of revenue or income for him or her.

In short, getting your first mortgage to buy a home is far better over the long run. Of course, this doesn’t mean that there aren’t any risks involved. While property prices generally continue to rise at a better rate than inflation, it is possible for the market to crash and for you to end up in negative equity. What this means is that the mortgage, or loan, you took out to buy the property in the first instance could end up being for more than your property is now worth.

It won’t typically be an issue if you’re prepared to live on the property for a longer period of time. In that case, you might want to invest in a recently constructed house instead of going for a resold property. With a reliable real estate firm, you can get advice on how to choose the best floor plan and customize it to meet your expectation. This could be your dream home, which would be worth investing in.

There are many factors to consider when getting a mortgage, which is why it’s always a good idea to get qualified mortgage advice before jumping into the deep end. Thankfully, free mortgage advice is readily available from companies like First Mortgage, making the whole process of buying easier and ensuring you’ve got all your bases covered.