When you compare cost of owning your own home to renting, there’s more than a difference in the house payment against rent being paid currently. This can be lower than rent but if you consider other benefits, owning can be lower than renting.
Every mortgage payment has got the amount that can be used for paying down principal that is building strong equity for the property owner. In the same way, home appreciates with time that benefits owner just by increasing the equity. For further help, check out keyrenter Houston now.
Check Out Your Needs and Wants
There are many benefits and drawbacks of both buying and renting. The main thing is to know the goals as well as long-term goals before you cash for down payment or monthly rent. Laying out the future plans can ultimately help you to save some more money over the course of time. For example, you will have to know how long you are planning to live in a home. Will it be possible to move in near future for the family or job circumstances?
Take in consideration the family goals. Suppose you are planning to have a family or have kids already, you might want stability & know you are living in the area because of good schools and family-friendly neighborhood.
Enjoy Tax Benefits
State allows you deduct several expenses connected with the rental property in categories of:
- Improvements
- Depreciation
- Ordinary & necessary expenses
It means you may deduct the insurance, interest on the mortgage, costs of maintenance, and physical wear on the property. Depreciation might produce nominal loss that in turn you can deduct against some other income. Thus, you will attain positive flow from your rental income minus other expenses and have net loss for the tax purposes.
