Rent vs. Buy

There are many advantages in owning your home. In some cases it may be cheaper to purchase a home instead of renting. Call one of the Funkhouser Real Estate Group today and ask for a Buy vs. Rent Analysis.. Each individual situation is different and we can assist in helping you to find the right position for you. Here are a few reasons you might consider purchasing:

• Tax breaks. The U.S. Tax Code lets you deduct the interest you pay on your mortgage, property taxes you pay, as well as some of the costs involved in buying your home.
• Gains. Over the last five years (1998-2002) national home prices have increased at an average of 5.4 percent annually. And while there is no guarantee of appreciation, a 2001 study by the National Association of REALTORS found that the typical homeowner has approximately $50,000 of unrealized gain in a home.
• Equity. Money paid for rent is money that you will  never see again, but mortgage payments let you build equity ownership interest in your home.
• Savings. Building equity in your home is a ready-made savings plan. And when you sell, you can generally take up to $250,000 ($500,000 for a married couple) as gain without owing any federal income tax.
• Predictability. Unlike rent, your mortgage payments don't go up over the years so your housing costs may actually decline as you own the home longer. However, keep in mind that property taxes and insurance costs will rise.
• Freedom. The home is yours. You can decorate any way you want and be able to benefit from your investment for as long as you own the home.
• Stability. Remaining in one neighborhood for several years gives you a chance to participate in community activities, lets you and your family establish lasting friendships.