Why Is Renting Better Than Buying A Home?

​Buying a home is on the top of many peoples' wish lists. It's one of those things that sound good in theory.  If you're just now deciding whether to rent or buy a home - or if you already have your eye on buying - here are some things to consider before taking the plunge.

Affordability
It is essential to consider how much you're able to pay off every month. What could happen if homeownership isn't within your budget? The solution is simple: rent! If your monthly payments would be so high that they'd leave little room for other expenses, such as food and gas -- or worse yet, force you into debt -- odds are you'd be better off renting.

Decreasing Land Value
People opt to buy because they think their homes will increase in value. But just because a real estate agent tells you a house will go up, it doesn't mean it will. The market fluctuates - sometimes drastically - and that could leave you with less to show than if you had rented instead.

Bidding War on Property
Buying your home means having to compete on bidding with the same property for sale. To win, you need to have the experience, intelligence, time, or money - or sometimes all three! It takes a tiring lot of energy and effort to go through one.

The Difference in the Costs
The real question is, what are your finances, expectations, and goals? If you want a long-term acquisition, then buying a house is the option. However, renting is the best fit if you wish to keep your options open for relocations. 

Risk in Homeownership Tax
Some great tax perks are associated with buying a home. Homeowners aren't taxed on the interest paid on their mortgages; if you rent, you are. Also, your mortgage payments can be interest-only, so you can deduct the interest from your taxes while other homeowners cannot.

Conclusion
Purchasing or renting a home can be a life-changing decision. Whatever your choice may be, always remember that home is where your heart and life are. If still unsure, it is wise to talk to a real estate agent in choosing your future home.

At Arnold Insurance Agency LLC, we do our best in making sure that our clients are well-protected with affordable and comprehensive policies. We make sure to go the extra mile to help you with your needs. To learn more about how we can help you, please contact our agency at (318) 965-5953 or Click Here to request a free quote.