Buying a Home - Can Renting Be More Expensive Than Buying a House?

If you're a renter, how often have you considered ifmortgage payment could end up around for $1400
home ownership may be more cost effective for youreach month. While your real savings will vary with your
budget? Many renters struggle with this dilemma,personal conditions, it's important to know buying a
undecided about which alternative would make betterhome can be more cost effective than renting. To
financial sense. Many renters suffer with theproperly evaluate your financial circumstances, seek
inconveniences of renting, yet they're afraid to pursuethe guidance of a season tax attorney, accountant, or
the option of home ownership because they believemortgage agent. After speaking with a professional,
the misconception buying a home will be more costlyyou may just decide owning a home is right for you.
than renting. Unfortunately, what reinforces thisWhen you graduate to the position of the homeowner,
pessimistic attitude is a bustling real estate marketnot only do you gain financially, but you get to
when home prices spiral upward.experience the joys of individual freedom. Think about
As you read this article, you'll learn about somehow wonderful life would be without a controlling
important homeownership facts that will give you hopelandlord telling you who can visit your home or what
to pursue buying your own home. After considering thepets you can keep.
benefits of personal freedom, tax benefits, futureIf you were to consult with former renters, the benefits
increases in rent, and the ability to make moneyof owning a home far outweigh the sacrifices needed
through home equity, you'll be amazed to find outto make it happen. It's difficult to put the price on the
owning a home can be cost effective in the long run. Ifbenefits of individual freedom and home stability when
you really take the time to figure out the thousands ofyou become a property owner.
dollars in lost equity you could have saved, you'll jumpWhen you first evaluate the monthly expenses of
at the first opportunity to buy a home.ownership, it may appear to be more costly than
After you buy a house, the government allows you torenting. This trend tends to be applicable in areas
reduce your taxable income by subtracting a largewhere land costs are high. Don't be discouraged if this
portion of your mortgage payment. In reality, yourshould happen. You need to remember the financial
overall homeownership costs can be reduced -gains of being a homeowner accrue over time. Over
contingent on your individual Federal, state, and localtime, you can save thousands of dollars with your own
marginal income tax rate (MTR). The amount youhome.
save could range between 20 to 40% of your monthlyOne important feature of ownership is the capability of
mortgage statement.amassing thousands of dollars over time. Even if the
Let's see how affordable home ownership can be-let'shome market fluctuate up and down, homeowners still
say you have a monthly mortgage payment of $2000tend to profit more financially from increased home
(which includes principal, interest, property taxes, andequity than someone who rents.
insurance). After calculating all tax deductions, your final