2006-06-16 10:38:40 · 7 answers · asked by Umm Ali 6 in Home & Garden ➔ Other - Home & Garden
Absolutely. All the money that you would normally sink into rent is now your mortgage payment. All the interest you pay on that mortgage is now tax-deductible, whereas all the rent money you pay is not.
As time goes by, the value of your home/property appreciates and you also earn equity in your home as you pay it off. On the other hand, you could rent a place out for 10 years and you are no closer to owning it, nor do you have anything to show for it in the end.
Besides, when you own a home - it's yours, you can do what you want when you want with it, to it, on it, in it. Wanna remodel the den? Go for it. Try making any major changes in a rental property, and you are at the whim of the landlord.
2006-06-16 10:47:01 · answer #1 · answered by g0at_cheez™ 3 · 11⤊ 0⤋
Aboslutely... look at it this way... you start renting a place at the age of 25... if you pay rent for an appartment or you rent a house.... and you pay $750/month for 60 years (so, you only rent, never buy) at the end of those 60 years you'll have paid out $540,000.00 and you have nothing to show for it.
If you buy a house at the age of 30 and the cost is $125,000, figure a mortgage of, let's say about 8% and a down payment of only 5%... let's say your mortgage payment is $750/month over 25 years.. you could pay off that house and not have a mortgage.. no rent payments either... and your 55 years old (and it could be paid off earlier if interest rates don't sky-rocket.. and you don't miss payments etc)... so, now your house is paid for, over the next 10 years to the age of 65, you save about $9000 vs paying rent and, you have a paid for house and no rent for the rest of your life... so, doesn't it make sense to buy a house and pay for it over 25 or even 30 years... rather than paying rent 'till the day you die... and, when you pay rent.. you're paying somebody elses mortgage.. so they have something to show for YOUR money after all those years... why would you want to pay somebody elses mortgage?
Nope.. buy a home.... be smart with your money!
2006-06-16 10:48:21 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Definately, as long as you dont live in an area where you are paying way more than the house should be worth. You get the nice tax benefits, and you are paying into owning something. Repeated studies have shown that homeowers end up with a much higher net worth than renters over their lifetimes.
2006-06-16 10:43:05 · answer #3 · answered by bmwdriver11 7 · 0⤊ 0⤋
Yes, if you are going to live in the community a long time. (More than five years). You should try to get a fifteen year mortgage, but say you have a thirty year note, as most do. After 8 or ten years the mortgage and taxes will be the same as local rents, it only gets better from then. By the time you are thinking about retirement you live in a "free " home; of course you have to still pay the taxes and by that time they might be as much as a quarter of your mortgage, but still, you have a better position, economically.
2006-06-16 10:57:07 · answer #4 · answered by fata minerva 3 · 0⤊ 0⤋
That depends. Are you looking to make an investment and save money? It's make sense financially speaking. But, if you're like me, you'd much prefer to pay rent and have someone else take care of the everyday problems. Like mowing the lawn or fixing a leak, etc.
2006-06-16 10:43:34 · answer #5 · answered by CarlaCCC 5 · 0⤊ 0⤋
I say yes its an investment. Why pay for someone else to own when you can gain equity yourself. I have made about 80 grand in 2.5 years buying my place. Find i good deal (usually private sellers) and watch the place go up in value.
2006-06-16 10:44:37 · answer #6 · answered by gordon c 1 · 0⤊ 0⤋
absolutely. you are then no longer throwing money in the street by paying rent. also, it is a solid investment...probably one of the most secure ones you can have nowadays.
2006-06-16 10:42:28 · answer #7 · answered by truckturner 3 · 0⤊ 0⤋