Rent or Buy Home?
Excerpted from the book, It’s More Than Money—It’s Your Life
by Candace Bahr, CEA, CDFA and Ginita Wall, CPA, CFP
A tremendous sense of pride comes
with owning your own place, and owning
a home has financial advantages as
well. You can deduct the mortgage interest
and property taxes on your income tax
return, your house may appreciate in
value, and when you sell your home
you’ll likely realize that gain
tax-free. Those are pretty great perks
for investing in property.
But buying a house at the wrong time or spending more than you can afford are mistakes that can seriously derail your financial plan. Fail to pay your mortgage and you could lose the roof over your head. During a housing slump, renting is often your best bet, since property owners who are waiting for prices to rise will rent out their property, flooding the market with rentals and causing rents to drop.
Your decision to rent vs buy should be based on your own personal situation and finances. Here is a worksheet to help you get a better sense of the financial and tax consequences so you can decide to rent or buy a home.
Online Calculator (below) or 
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At WIFE we welcome your comments. Please feel free to contact us.
At WIFE we welcome your comments. Please feel free to contact us.
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Bahr Investment Group (Carlsbad, CA)
Securities offered through LPL Financial. Member FINRA/SIPC |
