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 Rent
or Buy, that is the question.
Below you will see items that
need to be considered to make
your
decision.
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- Pros of
Homeownership
Leverage -
You put 5% down, but you get to keep 100% of the
appreciation
Tax Benefits -
You get to deduct mortgage interest expenses from your
income, saving on your taxes
Forced Savings -
As you make your monthly mortgage payment, you are
automatically building equity in your home month after month
Locking in Your Housing Payment -
If you choose a fixed rate mortgage, your monthly mortgage
expense is fixed and will never go up for the next 15 or 30
years
Pride and Flexibility in owning your home -
The property is YOURS! - remodel, paint, do whatever you
want to do.
Future Home Value Unknown - Home values don't always
rise, but if you've made the right choices and have had good
real estate agent representation, your home will appreciate.
Home Owner Associations -
Want to make sure your neighbor doesn't fill his front yard
with three thousand pink plastic flamingos, a hog pen, an
RV, ten roosters, and a purple stoned front yard that glows
under black light? These associations will protect you and
your property values by setting standards and restrictions.
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- Cons of
Homeownership
Leverage -
By putting only 20% down, you are borrowing 80% from the
bank and paying them thousands of dollars in interest each
year
Tax Benefits -
Your tax savings will basically be your mortgage interest
times your tax rate -- if you are in a 20% bracket, your
savings will be only 20% of all the mortgage interest you
paid.
Forced Savings -
For all the early years of the loan, almost your entire
payment goes to interest and little is applied to principal,
meaning you will build a very small amount of equity if you
sell your home after 5 or 6 years.
Future Home Value Unknown - Home values don't always
rise. Overall, the average home value has only kept up with
inflation over the last few decades, meaning there has been
no real gain in value (except that your property taxes keep
going up as well).
Home Market not Liquid - When you own a home, you are
usually pretty much tied to that location for a while.
Sometimes it can take 6 months or more to sell a house.
Home Owners Expenses -
When something goes wrong, you fix it or pay someone to fix
it. Painting, landscaping, roofs, fences, plumbing -- all
this is yours to pay for and maintain. And don't forget home
owners insurance and property tax. |
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Not Ready to Make a Purchase? There are lots of Lease property opportunities in
Denton County, TX
Complete the form below and we'll email you lease properties that fit your
criteria.
City, Zip, or
Specific Neighborhood
Type of Property
Lease Price Range
Minimum Number of Bedrooms
Minimum Number of Bathrooms
Minimum Number of Garage Spaces
Number of Stories
Moving Timeframe
Acreage or Lot Size
Pool on Property
Specific School Vicinity or District
Waterfront, Waterview
Any special needs?
Your email address
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