Should i pay rent or morgage?

Question

i see all these ads on TV about foreclosed homes starting at really low prices. my friend is renting a multi-bedroom house for 1200$ and i think i can get the same thing for 1300-1500$. this will be my first house should i go with renting or mortgage

Answer 1

try to own your property.  

Answer 2

Hi,

I just calculated and found that you can afford a home of about 225,000 just based on your ability to pay $1500 per month.

Now it will depend on where you live, your credit scores, your ability make a down-payment and how long you plan on staying in the area.

When you own, you will be able to get a tax write-off (the above numbers consider that factor). You will own a much bigger home and and better neighborhood as compared to the one you might currently be renting.  At the same time you will own the appreciation.

I hope that helps.

Thanks,

Amol.

Disclosure:  I am a licensed Realtor with Century 21 El Camino in Sunnyvale, California.

Answer 3

There are pros and cons to both. If you're planning on staying in the area you live in, then buying is a good idea. Especially at this time because interest rates are starting to go up. Owning your own home gives you a tax write off. You'll also have the freedom to paint, decorate, landscape, or even add on which you usually cannot do with a rental. Although some neighborhoods restrict what you can or cannot do with your home, that is a variable.

There are the responsibilities of maintaining the home you own plus you have to carry insurance. With a rental it is usually easier to pack up and leave if the need arises. Leases can be sticky though.

I would say definitely purchase a home if you are in the area you want to be in. If you enjoy pets, it is much easier to own your own place as well. Too many landlords either don't allow pets or put severe restrictions on them.

One more piece of advice:  Don't buy a house in a flood zone and if you can afford it, hire an inspector to take a look before you buy.