Renting vs. Owning

Buy versus Rent

Make Real Estate Work for You

For most people, purchasing a home is the largest purchase they will ever make, which makes it a daunting decision. We’ve broken down the pros and cons of buying a home versus renting one. 

Build Wealth

If you’re interested in your money working for you, buying a home is the smarter choice. Did you know that there are substantial tax breaks for homeowners? A major benefit of homeownership is that you can deduct your mortgage interest on your federal taxes. For example, a 30-year mortgage on a $300,000 loan at average rates will earn you more than $10,000 in interest payments your first year. Plus, in Virginia, real estate and land taxes are deductible if you itemize. Additionally, your home will grow in equity over time. A townhouse purchased in 2016 in Kempsville lakes sold for about $100,000 more than the original purchase price just 6 years later. 

There are practically no financial benefits to renting. You do not earn tax benefits at a federal or state level. You also are not building equity, so you’re essentially losing money over the years. Plus, rent can increase immediately after the current lease expires.

Customize Your Home

When you own your home, you have virtually unlimited freedom in decorating and improvements. If you want to make your house into your very own Barbie Dream House, you can! Though, if your vision is hot pink on the outside, we would advise against purchasing in a HOA. If your dream is to grow your own food and raise chickens, we would look beyond Virginia Beach (they don’t approve of chickens) and look towards Chesapeake or Suffolk. When you own your own home, you don’t have to worry about pet fees or breed restrictions either. 

However, with renting, there are often a lot of restrictions. Many landlords do not allow large breed dogs, if any dogs at all. Some also frown upon cats due to destruction to carpet or the potential smell of urine. You’re also limited on paint colors and what can be done on the walls. 

Worth It

It is true that when you’re the homeowner, you’re responsible for maintenance, taxes, and insurance whereas with renting, there’s little to no maintenance costs, the choice is clear. Purchasing a home is your key to making a house a home and growing wealth over time.

If the fear of upfront costs are preventing you from buying a home, let’s talk today about your options!