Renting versus buying a home always a major decision in relocation

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The summer has extended past the midpoint and with it comes many new exciting times. Of course the blazing temperatures will still linger for weeks, but school will soon be back in session and the normal routines of life will be back in full swing.

With this transition, it means there will be new people moving into the area and many students will be returning for school to many of Middle Tennessee’s universities and colleges. While several people will start on their first month of rent or possibly near the lease of living space, the catch-22 of renting or buying a home is always one that comes to mind.

For those looking to settle into a home, whether young or old, or whether you’re relocating for a short time or permanent stay, there are a few items to consider.

For those looking to rent, consider the time you will stay in a home. If you know you will be in the Middle Tennessee area for longer than three years, then home buying may be in your future.

On the same note, mortgage rates and monthly rent costs are items to consider as well. With low interest rates, buying a home can typically turn out to be a more cost-effective option in the long run as payments stay stable. In the same manner, monthly rent has increased in many cities and will more than likely continue to increase over due time.

In relocating to an area, equity is a matter to bring to the forefront. When you rent, you do have a place to live and don’t have to pay for certain maintenance tasks with the home, but you also do not have an asset to sell if you are ready to move. When purchasing a home, you have purchased an investment.

Regarding tax benefits, homeowners have the ability to deduct their mortgage interest payments and property taxes from their federal income tax, which will lower the final cost of home ownership. On the other hand, renters are out on a limb and cannot deduct any housing expenses.

Lastly, for the free spirit, home ownership will provide you the opportunity to do as you wish when it comes to remodeling or decoration. Want to paint the walls red, no problem. Ever thought of planting a garden in the back yard? The decision is yours to make without hesitation.

Whether relocating or looking to buy a home for the first time, these are a few matters to put on your checklist when it comes to making the big decision.