Buying Or Renting: Which Is Best For You?
Buying
Buying a home is generally considered a
long-term investment because you will build up equity in your home that you can
use in the future if you decide to sell. But, in order to buy a home, you must
first secure home financing and save up for a down payment that is typically
20% of the selling price. While down payments can be quite costly up front, you
do get to take advantage of some tax incentives like mortgage interest,
interest on home-improvement loans and property taxes.
The IRS allows you to deduct your mortgage
interest when it comes time to complete your taxes and all of that interest is
deductible unless your home loan is more than $1 million. If that's the case,
the IRS will limit your deductible interest, but you still get to take
advantage of a tax break. At the same time, the IRS will also consider the
interest on home-improvement loans fully deductible, up to $100,000.
Additionally, property
taxes are deductible on your federal taxes, but you'll need to do
an itemized deduction during tax season.
While
there are a few other tax incentives when it comes to buying a home, it is a
situation to carefully consider when hunting for your next place to live. Homeowners
have the opportunity to make adjustments, repairs and improvements as they see
fit and will cover the expenses out of their own pockets. On top of that, most homeowners
plan to live in their homes for a number of years because their mortgages may
have 15-, 20- or 30-year terms. If they choose to move at some point,
homeowners can sell their home by listing it on the real estate market.
Renting
Renting
townhomes, houses, apartments or new condos in NJ is little
different than buying. Renters are unable to take advantage of some of the tax
incentives associated with buying homes; however, they do have other desirable
attributes to consider. First, renters typically avoid large down payments when
moving into a new residence because they are not financing the home. While they
may be required to put down a deposit, it's generally much less up front and
they can get it back at the end of their lease if everything is in good
condition.
Speaking
of leases, most lease agreements span a 12-month time frame, which means a
renter must resign a lease if they want to continue living in the space for
another term. This is where buying and renting are different, because a
homeowner doesn't have to wait out or extend 'lease' terms, while a renter must
make the decision of staying or finding a another place to live. But at the
same time, it's easier for a renter to move from place to place because they
aren't tied down to selling a home and can essentially pack up to leave.
Another
thing to consider when renting is that most repairs and maintenance are
included in the rent you pay each month. If something breaks or the roof leaks,
the property manager is responsible for the bill. However, on the down side, a
renter can't alter floorplans or take on extensive improvement projects (add an
addition, upgrade kitchen countertops, etc.). While they may be able to paint
the walls for a more personal touch, much of the home’s existing features and
amenities cannot be changed by renters.
Labels: Buying or renting, lease, new condos in NJ
7 Comments:
nice
A lot of people are missing one point. High rise building (condos) can be rented out by individual owners! So the comparison should be between what renters are looking for high rise vs. single family townhouse living not what is negotiable. Before one has to write my essay today agreement, that person should familiarize herself with the conditions very well.
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Moreover, unless you are good at home improvements, the renovation will cost you plenty of money. buying house business in bangladesh While it's very likely that everybody would buy their home with cash if they could, hardly anybody does. This is because most people just lack the discipline to save up.
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