Renting Vs. Buying Real Estate In Columbus

Are you paying a hefty rent check to your landlord every month? With a great selection of Columbus OH homes for sale and record low interest rates home ownership has become more affordable than ever before. Depending on your circumstances, it may be better to buy real estate in Columbus instead of renting.

Here are some things to consider before to get a Columbus real estate agent and start house hunting:

Taxes: When you buy real estate in Columbus, your investment provides tax advantages. Your monthly mortgage payment is typically made up of four elements: principle, interest, property taxes and insurance. As a home owner, you can deduct all your interest and property tax payments from your federal income tax return.

Most people simply take the standard deduction on their income tax return since it’s quicker to file that way. Taking advantage of the tax breaks that come with owning a home requires you to itemize your deductions instead. Ironically, itemizing your deductions usually saves you money, because you can also deduct many other expenses like donations, or medical and dental costs over 7.5% of your income.

Home ownership sometimes requires upfront costs, like a down payment, earnest money and closing costs. It also requires you to budget money for regular maintenance of the property, as well as the payment of property taxes and homeowner’s insurance. Still, your total monthly cost may be similar to what you’re already paying for rent.

If you are planning to stay in one place for at least five years, then home ownership is often a better choice. Studies by the Government National Mortgage Association (GNMA, also known as Ginnie Mae) show that, because of tax advantages and inflation, home ownership usually becomes less expensive than renting starting in year three.

Equity: Home ownership offers you an opportunity to create wealth. Property values generally increase over time, depending upon your location, and are good long-term investments. Your Realtor can help advise you on this. The principle you pay becomes your equity in the property. As you build equity in your home, you create an asset that you can borrow against later on or use as a down payment for your next home. You can also increase your equity by increasing the value of your home through improvements.

Lifestyle: There are some non-financial factors to consider, too. What is your lifestyle like? Home ownership requires some stability. If your job requires you to move fairly frequently, renting may be a better option for you. On the other hand, home ownership provides some freedoms that renting can’t: you can do as you wish with your property. You can change the decor and landscaping whenever you like. You are not dependent upon the landlord’s permission to improve the property. And you don’t have to wait for the landlord to get around to repairing any problems.

Finally, for many people home ownership provides a sense of security and stability. It taps in to the great American Dream of having your own space to enjoy and develop. It provides a sense of community and belonging to a neighborhood, because you are tangibly invested in it. Renting just can’t provide this.

So is it better to rent or to buy? Call Susanne today at 614-975-9650 to talk about which choice is better for you!