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Buy or rent? That is the dilemma facing many potential
homeowners today. It seems that buying a home is more costly - and time
demanding - that renting a home. However, if you can comfortably afford
to do so, and you have plans to stay at your location for a while,
buying a home has significant advantages.
Financially, owning a home is often
promoted as a better choice than renting. Currently, there are
significant federal and state tax breaks: homeowners can claim
deductions for real estate property taxes and for the interest paid on
their mortgage each year. In addition, long-term homeowners build equity
both by paying down their mortgage and when their home appreciates in
value. Many savvy homebuyers increase their equity more quickly by
buying homes that need cosmetic improvements (such as decorating) rather
than structural renovation (walls need moving). These minor improvements
can significantly increase the value of a home over a relatively short
period of time with a modest investment.
However, there are times when renting
a home is the more sound choice to make. For example, if you are only
going to be at your place for a couple of years, it makes no sense to
buy the home, as this would be the more expensive endeavor. If you buy
or sell in a short period of time, you may actually lose equity.
Also, renting also makes good sense if
you've identified the general area in which you want to live but haven't
made a final decision as to the specific neighborhood. If you don't know
whether you'll feel comfortable in a particular neighborhood, it may be
better to rent a house or an apartment there for 6 months or a year, to
get more comfortable with it.
All
Wisconsin and Illinois Mortgage Programs
100% Financing (No Money Down) Programs
First Time Home Buyer Mortgage Programs
My Community Mortgage
Government Loans including
FHA, VA and
Rural Housing
Wisconsin Refinance Illinois Refinance Programs
Current Wisconsin and Illinois Mortgage Rates
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