Renting vs. Buying
Many people dream of owning
their own home. Here at TIRI, it is our job to make those dreams come true.
There are many advantages to home ownership, both emotional and financial. There
is security in knowing that the place you live in is your own. There is a
welcome feeling of permanence when you buy a property.
On the financial side it is
well known that being a homeowner entitles one to significant tax advantages.
TIRI clients find that their properties increase in value over time, known as
appreciation. Statistics show that the great majority of the population holds
the bulk of their "savings" in the equity of their home. The homeowner can
borrow against this equity if the need arises or sell the house to convert it to
Though rents typically
increase over the years, the homeowner maintains a stable housing payment in
cases where they have obtained a fixed-rate mortgage. When inflation is taken
into account the savings are even greater. Owning property is a big
responsibility, and should be considered carefully. As a homeowner you will
need to devote more time and energy than renters do. All maintenance will be up
to you, and if neglected your investment could suffer. Of course the upkeep is
reduced if you should decide to purchase a condominium.
If you move in your job every
year or so, you may not want to buy. Unlike renters, you cannot just give notice
and move away. You would need to devote time and effort to selling. There is
also the risk of foreclosure if mortgage payments arenít kept up, which would
result in damaged credit and a loss of any initial investment.
If you have concerns about
coming up with a down payment, please talk to your TIRI Associate. Down payment
requirements are often lower than you think. We can also point out different
ways to come up with funds.
Rates are at their lowest
point in nearly 40 years. It is the perfect time to move. Your TIRI Associate
will take you step-by-step as you go through the home buying process. First you
will be shown a selection of homes that fit your requirements. Then our
will help you find a mortgage. Finally, you will be guided through the closing,
and have achieved your goal of becoming a homeowner!
Back to our Renting page.