The lease is just about up and it is time to make that yearly decision once again. Is it time to purchase a home, or are you content signing a lease for one more year. This is a pretty big question to face, and it is one that requires quite a bit of serious deliberation by all parties involved before a final verdict is reached.
The bottom line is that there are benefits to both renting and buying. The best choice for you comes down to the way the pros and cons measure up to your lifestyle needs and financial expectations. For some people, a lease is truly the best option, but for others purchasing a home is a more financially sound decision. Some the benefits of both, are outlined below.
The Benefits of Renting a Home
Renting a home is the best decision for some people. Leases are signed for predetermined periods of time, with the most common lease length being for one year. When the year is up, you can either sign another lease or move on.
Renting is the ideal situation for people who don’t have long-term plans in one specified area. This includes students and recent college graduates, those in the midst of career transitions and people undergoing major life changes. A lot of things can change in a year, including your job, your pay rate and your interests. Leasing property year by year makes it easier to roll with those changes.
Another big benefit of leasing properties is the negation of personal responsibility for household problems. Broken appliances, plumbing problems and other issues are often taken care of by the landlord. You are paying to live there, but when problems arise they are not always your responsibility to fix.
The Benefits of Purchasing a Home
Buying a home has some pretty evident benefits. By purchasing a property you are making a financial investment that you have the opportunity to benefit from. Every month as you make a mortgage payment you are putting money into your own equity. In addition, you receive tax benefits for the interest payments you make on your mortgage. For a lot of people this makes paying bills a bit easier to cope with.
When you purchase a home you have the right to decorate it, fix it up and otherwise alter it as you see fit. This might mean taking down a wall here, widening a door there or painting the walls everywhere. As the owner of the home you won’t have to check with anyone to make sure it is okay. Additionally, tax breaks that are available exclusively for home owners can help you put aside finances to make the changes you see fit for your home.
Before making the decision to buy or rent, consider your two options carefully. Mortgage rates remain low at the moment, which makes purchasing a home an attractive option for many qualified buyers.
John Lynch with Dwell360 is a REALTOR® who services the cities and suburbs of metro Boston. He is focused on his customers and his experience in the residential real estate market is extensive. Search for homes in Massachusetts and then give John a call.