Still unsure whether you should rent or buy your home? Here are two more factors to consider:
INVESTMENT POTENTIAL: Renting has no investment benefit. Homeowners may build equity over time through mortgage payments and market appreciation. Real estate assets have historically generated a solid return. In recent years, some markets appreciated as much as 20% in a given year. Currently, some micro-markets are still seeing appreciation, but the overall market has corrected and appreciation will be slower to ramp back up. Again, consider the time you think you’ll live in the home.
TAXES: Renting does not offer any tax benefits. One significant benefit of owning a home is the ability to deduct interest on mortgage payments. Married homeowners may deduct interest on mortgages worth up to $1 million while single homeowners may deduct interest on mortgages up to $500,000. Property taxes may also be deducted. Consult your tax advisor to determine what you may or may not deduct.
