An age-old question: Should you rent or buy

The economy has been steadily improving the past few years and home prices are rising.

The situation always seems to spark conversations, which leads to a common consumer dilemma: Should you be renting or is it time to purchase a home?

Although there is no right or wrong answer, there are pros and cons to be considered.

For a number of reasons  not everyone should own a home.

On the other hand many renters would be far better off owning a home and would save thousands of dollars every year.

 How do you decide? Take a look at both sides of the argument and debate the pros/cons.

Owning:

• No increases in rent or uncertainty with landlord.
• Making  your own decisions and have control to do whatever you want. It’s your home and creating the living space you want feels great.
• A dedicated  savings routine that builds equity over time. Every month the amount you owe goes down. Eventually it’s paid off and your housing expense drops substantially.
• Ability to pay less Federal income tax with deductions such as property tax and mortgage interest.
• Putting down roots in a community, choice of school and more options to choose from.
• In many cases the mortgage payment is less than rent, sometimes by thousands of dollars per year

The cons include less mobility to move quickly, repairs and maintenance are your responsibility, legal obligation to pay the mortgage, may owe more than you can sell the home for in down markets, and the lack of ability to obtain a loan and become qualified for the price range you want.

Renting:

• No long term commitment; if you don’t like it, move.
• Maintenance/repairs are paid by the owner
• May be more affordable than owning a home (depending on the area)
• No responsibility to pay a mortgage debt or have your credit damaged if something goes wrong and you can’t make the payments
• If  housing prices go down you aren’t losing any money.

Cons: No control over property, rising rental costs, owners decide what you can and can’t do, lack of stability (owners can decide not to renew the lease and require you to move) no deductions to pay less federal income tax, no long term equity or ability to own a home free and clear.

Owning a home is a big decision so do your research and find out your options. Get professional advice.

Sit down with a local mortgage banker, or another financial professional, for help with your monthly budget, what you can reasonably afford and the type of loan you are approved for.

Crunch the numbers. After you have your research done then you can make a decision for what is best for you- as an educated consumer who knows the facts.

(On Wednesday, the Space Coast Association of Realtors releases single-family, and also condo/townhome, sales for January 2018.)

Dyer is Division President of Dyer Mortgage Group in Melbourne. She can be reached at 321-215-4419, or bdyer@dyermtg.com.