Owning vs Renting

Emotional & Financial Benefits

Owning vs. Renting??? It’s a tough decision, especially if you’re a first time homebuyer. There’s no doubt that homeownership comes with strong emotional benefits. Homes are a place to feel secure, build a future and raise a family. Not to mention, the immense personal satisfaction that comes with homeownership.

Beyond the emotional benefits, there are strong financial reasons to buy a home.

  • A home generally builds equity over time through the combination of mortgage payments and appreciation.
  • A portion of your mortgage interest and real estate taxes are tax-deductible.
  • You may leverage your money – even though your down payment may be 20% of the home’s purchase price, you receive the full value of any appreciation.
  • In many markets, including ours, the cost of ownership can be less than renting.
  • You may strengthen your credit with your ongoing and timely mortgage payments.
  • You may pass on your home to your children.
  • And, as a homeowner, you are free to renovate, remodel, repair and repaint your property – you’re never dependent on a landlord to get the job done right.

A Cost Analysis

Western Title & Escrow in Eugene recently released a short graphic that compares the costs of renting to buying over a given amount of time.  

Photo courtesy of Western Title & Escrow, Eugene, OR

If you buy a $250,000 home with 10% down and an annual interest rate of 3.75%, in 2 years 6 months you will break even. Meaning you will have paid as much in rent as you would have to own the house. After that time, the benefit of ownership exceeds the benefit of renting through the financial gains made from tax deductions and by building equity through increased principal and appreciation.

If you are renting, NOW is the time to consider BUYING. I know the process can be a little scary for first-time buyers, but I’m happy to help you get started. I remember the first house I bought and at the time I didn’t think I would even qualify for a loan based on my income. I was wrong. It’s easier than you think and there are so many great loan options available now. Not to mention, mortgage rates are extremely low. The timing is perfect!

Give me a call, an email or drop me a message on social and I will be happy to recommend some of my favorite and most trusted lenders. Together we will walk you through the process. You have nothing to lose and EVERYTHING to GAIN!

I’m here to help and happy to do it!

541-579-9213 / aimeehartwig@bhhsrep.com / aimeehartwigrealestate.com

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