Is it Better to Rent or Buy?
Which is right for you – renting or buying a home? The truth is … it depends. Being a homeowner brings new responsibilities, such as maintenance, lawn care and putting up your own holiday decorations. However, there are many advantages including building equity and creating your dream space. Renting offers flexibility, but generally, not long-term stability.
A good approach is to figure out your goals, crunch the numbers and do what works best for you. Here’s a look at the advantages of both buying and renting:
Building equity and credit. Rent payments are monthly expenses, but mortgage payments* ultimately reduce what you owe and build equity (ownership) in your home. Home ownership helps you build a credit history and improve your net worth.
More stability. When you lock in a fixed mortgage rate, you know exactly what your mortgage payment will be each month. There’s no worrying about the rent going up at the end of your lease period*.
Schools. For families with children, buying a home within a good school system offers educational benefits.
Tax benefits. Homeowners may be able to deduct mortgage interest and property taxes up to certain limits on their tax returns. Also, buyers may be able to deduct any points (pre-paid interest) paid when closing the loan if taxes are itemized.
Creating your dream space. Unlike a rental, a new home gives you a blank slate to fit your style and needs. Is minimalist Marie Kondo your vibe? Need a home office, yoga studio or pet feeding station for Bruno? The Trendmaker Design Studio brings the latest colors, styles and premium finishes together in one place to help you personalize your dream home.
*Mortgage payments may include taxes, insurance or HOA items, which don’t build equity.
*Your mortgage payment could change if your annual taxes and homeowners insurance premium changes.
Fewer upfront costs and paperwork. When you rent, of course, you’ll likely have to pay a deposit for yourself and any pets, plus the first month’s rent when you move in. Generally, that is significantly less than a traditional down payment required to purchase a home. If you’re not planning to stay in your home for at least a few years, it can be hard to recoup the closing costs and down payment.
Flexibility. As a renter, you are free to be more mobile and change communities at the end of your lease if you choose. If you’re thinking of changing jobs or moving to a new city, renting may be your best bet.
Maintenance and repair help. If your dishwasher is on the fritz or the AC is not keeping up with the Texas summer, you can call the landlord. In many cases, general maintenance and repairs are covered.
Building credit. You can build your credit history by renting. Many landlords report rent payments to major credit bureaus. Concurrently, paying every month on time could enhance your credit score.
No property taxes. If you don’t own a home, you won’t have to pay annual property taxes.
If you are considering a new home purchase, Trendmaker Homes has everything on your wish list. You’ll find carefully crafted, stylish homes with wide-open floor plans, gourmet kitchens and indoor/outdoor living spaces. All in a wide array of great Texas communities close to everyday conveniences and designed for active lifestyles, letting you decide which home and neighborhood are just right.
Every home comes with Trendmaker’s LivingSmart® suite of energy-efficient and smart technology features, helping homeowners positively affect their wallet and the planet for years to come. Plus, the Trendmaker team has simplified the buying process and treats you as a valued partner every step of the way.