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Tranquil Estate Custom Craftmanship Infinity Pool and Pool House

Navesink area of Middletown
$2,250,000

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Lovely Colonial with White Picket Fence

Little Silver
$624,000

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Spectacular Center Hall Colonial with Heated Pool

Chapel Hill area of Middletown
$849,000

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Magnificent New Construction

Fair Haven
$1,195,000

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Four Seasons at South Knolls

Jackson
$498,000

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"Princeton Collection" Community

Plainsboro
$540,000

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NEW CONSTRUCTION on a private cut-de-sac street

Fair Haven
$1,549,000

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Buying Vs Renting

Are you in the market and contemplating buying or renting? Owning a home is usually the American Dream. There’s a tremendous amount of value in owning a home, especially with interests rates being so low. The biggest difference in owning vs renting is the incredible tax savings and benefits when owning that you don’t receive when renting. Essentially, when renting you are paying your landlord’s mortgage and building equity in their home. Take a look at some of the differences below:

Buying

  • Initial costs would be your down payment
  • Recurring costs are expenses such as your mortgage (which most of the time is equivalent to rent), HOA fees (if applicable), property taxes, homeowner’s insurance
  • Price Appreciation (typically 2-3%/year)
  • Building up equity while paying down a mortgage
  • Ability to use equity in home to pay other large-ticket items (ex: college tuition)
  • Tax breaks and credits – mortgage interest deductions as well as property taxes
  • Creative ability to design/decorate the home however you’d like
Renting

  • Initial cost would be  1 ½  months’ rent as security deposit and an additional 1 month’s rent upfront
  • Recurring costs are rent payment (and in many cases, utilities, renter’s insurance and sometimes taxes)
  • Rent payment  increases every year in most cases
  • Volatility of home sale prices is not of much concern when renting
  • No tax breaks in renting
  • Fixed costs – larger repairs will usually be the landlord’s responsibility

 

 

In most cases, it is usually a better financial decision to buy instead of rent. However, you should consider renting when faced with the following:

  • Your career or lifestyle leads to moving soon or frequently
  • You are being faced with financial setbacks and/or your credit needs time for repairing
  • The market in which you are renting is a very expensive market
  • You do not want the responsibility of home maintenance/improvements
  • Your cash is very profitable in other investments

Rent vs. Buy calculator: http://www.realtor.com/mortgage/tools/rent-or-buy-calculator/

For more information to find out if renting is better for you than buying, or vice versa, call Hubbard Park Real Estate at 732-747-0700 for a complimentary consultation.