As we grow older and our roots sink firmer into the ground, we are all at some point confronted with the age-old question of renting versus buying a home. At Southport Realty we understand your concerns. Below are some important items to consider when weighing the pros and cons of renting vs buying in Southport.
First, let us look at the pros of owning a home:
- The home is yours! All improvements made as a homeowner are done on your own terms without having to consult a property owner.
- Home owning builds equity. Unlike renting where money is continuously funneled without return, owning a home means building equity that you then have the right to sell or pass on. Although interest payments do not contribute to said equity, it is favored to making payments to a landlord.
- Tax benefits come with owning a home. Depending on individual circumstances, owning a home means deducting interest paid on your mortgage from your taxable income.
A few disadvantages to consider:
- Repairs and maintenance costs. Homeowners are responsible for any repair costs if something malfunctions or breaks. It is vital that homeowners have saved money to pay for these costs upfront.
- Property tax. Take the assessed value of your property and multiply it by the tax rate and you will receive the property tax. Renters enjoy the luxury of no property tax, where the landlord is responsible to pay the amount.
- Home owning is a long term commitment. Unlike renting, owning a home means it is more difficult to move locations once buying. If your income suddenly changes, switching to a new home is no longer an option.
Renting versus buying in the Southport region is more or less the same as anywhere else. Pros and cons all seem to point to a simple conclusion. If you are looking for a permanent, long-term (5+ year) residence, buying a home may make more sense. If you’re still looking for a place to take root, then rentals are the way to go. Contact us to begin your Southport, N.C. home search!