When does it make sense to buy and when does it make sense to rent? Owning a home can be a source of pride and stability. It's a place to call your own. It can even be a sound long-term investment and tax shelter. However, it's not for everyone.
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If one or more of the following statements are true, then buying may be right for you:
- You plan to live in a single location for a long time.
- You want to lock in your housing costs (except for rises in home insurance, real estate taxes and maintenance costs).
- Interest rates are relatively low.
- You want to save money in taxes. The bigger your income, the greater the tax advantages in buying a home.
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If one or more of the following statements are true, then renting may be for you:
- You don't expect to stay in the same location for more than 3 or 4 years, and you're not looking for an investment property.
- Housing prices in your area are much higher than rents.
- You can't afford the maintenance and upkeep of your property.
- You feel you can be diligent in saving and/or investing your money elsewhere and earn a potentially higher return.
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To compare the cost of buying a house vs. renting a house, visit www.quickenloans.com
online and use Rent vs. Buy interactive calculator in the Home Buying Calculators section. If you decide you want to buy a house you can come back here and set up the goal tracker.
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